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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL- Not for Publication
INDEX TO ISSUE OF JULY 3, 1934.
Surprise Appointments Delay New Commission Organization. ... 2-6
A-K Executive Questioned. In Army Investigation,.... . 7
Commission Division Directors Uncertain . 8
Yankee Network Sued For Libel . 9
Crosley Will Extend Convention Glad Hand . 9
Business Letter Notes . 10
Patterson, Paley and McCosker In WNYC Survey . 11
Decisions Of The Federal Radio Commission . 11
No. 737
July 3, 1934.
SURPRISE APPOINTMENTS DELAY NEW COMMISSION ORGANIZATION
Because so few members of the new Federal Communications
Commission knew in advance that they were to be reappointed, a
delay was occasioned in the organization of the Commission. Judge
E. 0. Sykes, new Chairman, endeavored to get the members together
Monday, July 2nd, inasmuch as the creation of the Commission was
effective July 1st, but a quorum could not be assembled in
Washington on that day. Accordingly Judge Sykes said that it
might be a week later before they could organize. Only three
members were in Washington at the time.
Although several had been spoken of as possibilities,
among those finally chosen, dark horses predominated. These
included former Governor Norman S. Case, Republican, of Rhode
Island; Paul Walker, Chairman of the Oklahoma Utilities Commission,
Democrat, of Oklahoma; Hampson Gary, former Minister to Switzerland,
Democrat, of Texas; George Henry Payne, publicist, Republican, of
New York, and Dr. Irvin Stewart, of the State Department, Democrat,
who hails from Texas. The reappointment of Judge Sykes, Chairman
of the Federal Radio Commission, Democrat, of Mississippi, and of
Col. Thad Brown, Vice-Chairman of the Radio Commission, Republican,
of Ohio, seemed to have been a foregone conclusion.
Judge Sykes was appointed for the seven year term;
Colonel Brown for six years; Mr. Walker, five years; former Governor
Case, four years; Dr. Stewart, three years; Mr. Payne, two years;
and Mr. Gary, one year. At the conclusion of their present terms,
they are subject to appointment, if again approved, for a seven year
term. All of the present appointments will have to be confirmed by
the Senate when it meets January 1st. If any should not be con¬
firmed by the Senate, they will receive their pay from July 1st to
January 1st. The present Radio Commission will function until the
new Commission is organized.
An idea of the uncertainty as to who would be appointed,
which apparently prevailed until the last minute, and the speed with
which President Roosevelt moved when he finally made up his mind, is
illustrated in the appointment of Mr. Walker. The names of the
Commissioners were given to the newspapermen Saturday night for
Sunday morning's release but late Saturday afternoon, President
Roosevelt was still trying to reach Mr. Walker by long-distance
telephone in Oklahoma. The White House was told that Mr. Walker
was in Washington sitting with the Interstate Commerce Commission.
An hour or so later the President succeeded in reaching Mr. Walker
at the Cosmos Club, which is only about a block from the White
House. The President asked him if he would accept the position and
when the latter assented, President Roosevelt, at the telephone,
is reported to have said, "You are appointed. "
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It is a typical Government Commission in which politics,
rather than technical qualifications, predominate. Senators Pat
Harrison and Stephens, of Mississippi, are credited with the
reappointment of Judge Sykes; former Governor James Cox, of Ohio,
and one time Democratic Presidential nominee, was said to have
been behind Colonel Brown; and Representative Sam Rayburn, of
Texas, is reported to have been the sponsor of Dr. Stewart, who
also hails from Texas. Representative Rayburn was the co-author
of the Communications Act, and Dr. Stewart, in charge of radio
at the State Department, acted as his advisor. Although natives
of the same State, they did not meet until several months ago.
When Dr. Stewart's name was first mentioned, he seemed to take
it lightly and apparently was as surprised as anyone when appoint¬
ed.
Mr. Walker had the support of Senator Gore and appar¬
ently the entire Oklahoma delegation. Mr. Gary, from Texas, was
said to have had the backing of Col. E. M. House, and Senator
Sheppard, of Texas.
Former Governor Case is said to have been the personal
selection of President Roosevelt. They met as members of a con¬
ference of Governors when Mr. Roosevelt was Governor of New York.
Messrs. Roosevelt and Case were a part of a sub-committee, the
other members of which were Governors Pollard, of Virginia; Dern,
of Utah, and Woodring, of Kansas. Although of opposite political
faith, a close friendship was maintained between Mr. Roosevelt
and Mr. Case with the result that the latter has twice been a
guest at the White House. Governor Case was described by friends,
notwithstanding his appointment by a Democratic President, as "a
real Republican".
Considerable comment was occasioned by the fact that
Representative Anning S. Prall, of New York, also a personal
friend of President Roosevelt, was not appointed to the new
Commission. The President, when Mr. Prall was defeated for
renomination to the House, appointed him to the Radio Commission
but he never took his seat. Under the law, Mr. Prall, having
been a member of the Congress which created the Communications
Commission, would not be eligible to serve on it until January
1st. His absence from the new Clmmission gave rise to two
stories. One was that Mr. Prall would succeed Mr. Gary at the
end of the latter's first term; another was that Mr. Prall would
be appointed to the Federal Trade Commission to fill one of the
vacancies occasioned by the appointment of Messrs. Healy and
Matthews to the Securities and Exchange Commission.
It seemed a certainty that Capt. S. C. Hooper, Chief of
Naval Communications, would be appointed a member of the Communi¬
cations Commission but this was said to have been strongly object¬
ed to by one of the large communication companies. Radio Com¬
missioner Hanley was reported not to have been reappointed by
President Roosevelt because of the allegations made by the
Chicago Tribune that he had changed his vote and swung a decision
of the Commission in favor of a Peoria, station because the latter
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was represented by a lawyer who handled the radio business for the
client of Arthur Mullen, of Nebraska, of the Democratic National
Committee and floor manager for Roosevelt at Chicago, Mullen was
credited with having secured the appointment of Hanley, and
Hanley's failure to be reappointed is taken as a further slap by
the Administration at Mullen, who was subsequently forced off the
Democratic National Committee by the President.
The failure of Commissioner Lafount to be appointed to
the Communications Commission is charged to the fact that Mr.
Lafount, a Smoot Republican, failed to vote according to instruc¬
tions from the White House in a case which the Commission had
before it concerning two Louisiana stations, KWKH, at Shreveport,
and WWL, at New Orleans.
The new Communications Commission brings together men of
long experience in public life* Judge Sykes, who is 58 years
old, was formerly Justice of the Supreme Court of Mississippy,
and was appointed to the Federal Radio Commission by President
Coolidge in 1927, and reappointed by President Hoover in 1930. He
will have been the only member of the Radio Commission who survived
from its start to finish.
Col. Thad Brown, former Secretary of State of Ohio, and
campaign manager of President HoGver in that State, began his
service in Washington as Chief Counsel of the Federal Power
Commission. He was subsequently appointed General Counsel of the
Radio Commission in 1929, and later a Commissioner. Colonel Brown
is 47 years old, and served as a Captain in the World War.
Mr. Walker was judged to be about 40 years old, and is
said to be one of the best known State Commissioners on little
understood angles of railway rates. He has served as Special
Counsel of the Interstate Commerce Commission, and for the past
two years has been Chairman of a section of the Oklahoma Corpora¬
tion Commission which has been conducting an investigation of the
Southwest Bell Telephone rates. He is a member of the Executive
Committee of the National Association of State Railroad and
Utilities Commission*
According to a friend of Mr. Walker, the latter' s appoint¬
ment was put up to President Roosevelt that the Commission would
doubtless be required to have its political appointees, and that
for window-dressing, it would be well for the President to appoint
someone with Public Utilities experience and to really "do the
work. " This friend predicted that Mr. Walker would develop into
the "Joe Eastman*1 of the Commission. One of the difficulties which
presented itself in the appointment of Mr. Walker, was that it
would allow "Alfalfa Billp? Murray, Governor of Oklahoma, to appoint
his successor* but President Roosevelt was said to have remarked
that he would not allow that to stand in his way.
Dr. Stewart* who is 35 years old, came into the radio
picture four years ago when he was appointed to supervice radio
matters insofar as they affected treaties. He had previously
4
7/3/34
served as Assistant Solicitor of the State Department, and after
retiring for a couple of years to private practice, returned in
1930 in charge of the radio division at the State Department.
He was born in Fort Worth, attended the public schools there,
was a student for two years in the University of Oklahoma. Later
he received his B.A. , M.A. , and L.L.B. degrees at the University
of Texas, and finally his Ph. D, at Columbia University. He
later taught Constitutional Law at the University of Texas. Dr.
Stewart served as advisor at the International Radio Conference
in Washington in 1927, at the meeting of the International
Technical Consulting Committee on Radio at Copenhagen, in 1931,
and was a delegate to the International Radio Conference at Madrid
in 1932, and finally as advisor to the North American Radio
Conference in Mexico in 1933.
Former Governor Case was born in Providence, R. I., and
is 46 years old. He received an A.B, degree at Brown University
in 1908. He studied law at Harvard from 1909-1911, and received
his LL.B. from Boston University in 1912, and LL.D. degrees from
Manhattan College in 1930, and Rhode Island State College in 1931.
He married Emma. Louise Arnold, of B«thel, Vt. June 28, 1916, and
they have three children, Norman, John and Elizabeth. Mr. Case
was admitted to the bar in Rhode Island in 1911, in Massachusetts
in 1912, and the Supreme Court of the United States in 1923.
He was a member of the City Council of Providence from 1914-1918,
of the Soldiers' Bonus Board of Rhode Island, 1920-1922, United
States Attorney, District of Rhode Island from 1921 to 1926. In
1927 he was elected Lt. Governor of Rhode Island and served until
1928, succeeding as Governor of Rhode Island upon the death of
Governor Pothier for period ending January, 1929 and has been
Governor since that time, his second term expiring in 1933. He
was Chairman of the Executive Committee of the Governor's
Conference 1930-32. He served as 1st Lt. Troop A, R. I.N.G. ,
Mexican border, 1916; World War service, July 25, 1917 to July
19, 1929, as Gapt. Co, A., 103d Machine Gun Batt. , 26th Division,
and later with General Staff of the A. E. F. He received the
Chevalier de l’Etoile Noire (France) in 1918, He is a member
of Delta Upsilon, a Baptist and a Mason, and a member of the
University Club,
George Henry Payne was born in New York City and is 57
years old. He was a student in the College of the City of New
York and later in the College of Pharmacy, and finally studied
in the New York Law University. He was married at Dallas, Pa. to
Mrs. Emma James Sturdevant, March 9, 1918. Propr. Long Branch
Summer Season, 1893, The Gothamite, 1895-96; Associate Editor,
Criterion Magazine, 1896-99; exchange editor and editorial
writer, Commercial Advertiser, 1895-96; musical and dramatic
critic, New York Evening Telegram, 1903-07; political writer,
Evening Post, 1909-12. He was a lecturer on history and develop¬
ment of American Journalism, Cooper Union, 1915, and President
Direct Nominations Club, 1901. He was a member of the New York
County Republican Committee 1906-07 and a candidate for Assembly
in 1908, He was Manager, Lit. Bureau for Henry L. Stimson,
Republican candidate for Governor in 1910 and one of the New York
— 5- —
7/3/34
campaign managers for presidential campaign of Theodore Roose¬
velt 1912; also manager of the campaign for G-eorge McAneny,
President, Board of Aldermen, 1913; now Tax Commissioner of New
York City. He was a delegate to the Republican National Conven¬
tion (floor manager for General Wood), Chicago, 1920. He was
a candidate for United States Senator, Republican primaries
against James W. Wadsworth, receiving 46,039 votes, in 1920. He
was decorated Order of Danilo I (Montenegro), 1921.
Mr. Case is a member of the Metropolitan Club (Wash¬
ington, D. C. ) , the Array and Navy Club, City Club, National
Republican Club, Park Republican Club, Hardware (New York) Club,
Cercle Interallie (Paris, France). He is the author of "A
Great Part and Other Stories of the Stage, published in 1901;
"The Birth of a New Party", published in 1912; "History of the
Child in Human Progress, 1915; "History of Journalism in America",
1919; "England - Her Treatment of America", 1931; also a one-
act musical comedy, "In Silver Idaho", 1911, and a one-act
play, "The Lightning Stroke", 1915.
Hampson G-ary is 59 years old and was born in Tyler,
Texas. He was educated in the Bingham School, North Carolina
and the University of Virginia; In 1901 he married Bessie
Royall, of Palestine, Texas, and has two children, Franklin and
Helen. He was admitted to the bar in 1894 and in practice of
law at Tyler, Texas until removal to Washington, D. C. in 1914.
He was referee in bankruptcy for four years, Standing Master
in Chancery, U. S. Court, 2 years and appointed Special Counsel
of the Department of State in December, 1914, to assist in the
consideration of matters arising out of the war situation in
Europe. He was advanced to the regular service and made a
Solicitor, 1915. He was diplomatic agent and Consul G-eneral
to Egypt, rank of Minister Resident, 1917 to 1920. While serv¬
ing in Cairo, was in charge of American interests in Palestine,
Syria, and Arabia. He was at the front beyond Jerusalem with
Field Marshal Allenby for a while in 1918. He was called to
Paris in 1919 for work with the American Comma, to Negotiate
Peace; Minister to Switzerland, 1920-1921.
fir. Gary has been engaged in general law practice in
Washington, D. C. since 1921, and New York since 1931. He
was a Capt. U. S. Volunteers Spanish American War, 1898, later
Colonel, 3rd Texas Infantry. He was a member of the Texas
House of Representatives, 1901-02 and regent, University of
Texas, 1909-11. He is a member of the American Bar Association,
American Society International Law, University of Virginia
chapter Phi Beta Kappa, Alpha Tau Omega, New York Southern
Society, S. R. Episcopalian. His clubs are the Metropolitan
and Cosmos Clubs in Washington, as well as the Chevy Chase and
Lawyers Club of that same city.
XXXXXXXX
- 6 -
7/3/34
A-K EXECUTIVE QUESTIONED IN ARMY INVESTIGATION
Delving into employment of certain Army officers by
outside business interests, Acting Chairman Paul Kvale of the
House Military Affairs Investigation Committee today (Tuesday)
in Washington behind closed doors questioned Joseph L. Schwank,
executive of the Atwater Kent Radio Company.
Schwank was 11 invited" to give any information he may
have regarding services rendered Atwater Kent in 1930 and 1932
by Lieut. Col. Joseph I. McMullen, Chief of the Patents Section
of the Judge Advocate General’s office of the Army.
The Committee also is in possession of records show¬
ing that at least two other Army officers received compensation
from business concerns, it was disclosed. Kvale said the
names of other officers involved in the records would not be
made public until the facts have been thoroughly checked, and
unless the findings justify action by the Committee.
He said the Committee desires to ascertain whether
the officers were on leave at the time and whether the firms
employing them were doing business with the Government at the
time.
The Atwater Kent representative was asked to testify
by Committee investigators, who spent several days in New York
and Philadelphia last week.
The Committee is awaiting a promised second appear¬
ance of Colonel McMullen, who already has given sesational
testimony. The veteran military lawyer told the committee
he would produce personal records as to fees he received from
Atwater Kent and from the Cuban- American Manganese Corporation
several years ago.
The Committee has indicated it would like to compare
Col. McMullen' s records with those received from other sources.
In his testimony, Colonel McMullen said he received about
$5,000 from Atwater Kent interests for patent services and that
he was on the payroll of the Cuban-American Manganese Corpora¬
tion at a retainer of $250 a month.
XXXXXXXXXX
- 7 -
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COMMISSION DIVISION DIRECTORS UNCERTAIN
When asked who might serve as the directors of each
of the three divisions - broadcasting, telegraph and telephone -
which it is expected the Communications Commission will create,
Judge E. 0. Sykes said that no thought had been given to per¬
sonnel in this connection and a decision would not be reached
until after the Commission met. The only names heard in con¬
nection with any of the divisions were W. D. Terrell, present
Chief of Field Operations, and Capt. Roger W. Yeomans, formerly
with the Army Signal Corps and the A. T. & T.
"We have to get organized before we can work out the
divisions", Judge Sykes explained. He added that he was very
much pleased with the selection of the Commissioners. At least
one person commenting upon this did not agree with him.
"Apparently the President concentrated on the
Securities Commission and allowed Farley to have his way with
the Communications Commission whose complexion is highly
political", the critic remarked.
"One or two politicians may have slipped through",
someone commented. "Yes a number of politicians get abaord.
There isn’t a man on the Commission with technical knowledge
of either radio or communications. "
A guess as to how the Commission might divide itself
to supervise the divisions was as follows: Broadcasting -
Brown and Stewart; Telegraph - Case and Payne; and Telephone -
Walker and Gary, with Judge Sykes sitting in on all three if
he so desired.
Two favorites in the betting were Paul D. P. Spearman
for General Counsel, and Dr. C. B. Jolliffe for Chief Engineer.
George Porter, Acting General Counsel seeks to head the Legal
Division. Miss Fanny Neyman, of the Legal Division, who had
Commissioner ship ambitions, is spoken of as having a chance for
Assistant General Counsel; also Ben Fisher, Assistant General
Counsel of the Radio Commission.
In the Engineering Division, it is believed places
will be found for Ford Greaves and E. K. Jett, who both served
under Dr. Jolliffe on the Radio Commission. Herbert L. Pettey,
Secretary of the Commission, known as Farley's "fair haired boy",
despite the bitter newspaper fire he has drawn, seems to be
slated for Secretary of the Communications Commission.
X X X X X X X
- 8 -
7/3/34
YANKEE NETWORK SUED FOR LIBEL
A libel suit asking damages for $100,000 from the
Yankee Network News Service, Inc., for broadcasting an admittedly
false report during the celebrated Millen-Faber murder case has
been filed in Boston in Federal Court by Abraham Faber, one of
the defendants, since convicted of murdering two policemen dur¬
ing a bank hold-up.
The broadcast in question was made at 9:55 P.M. , March
23, and alleged that Faber had made a desperate attempt to
escape from the jail at Dedham, Mass. , where he was confined
during his trial. Stations WNAC and WAAB, operated by the
defendant corporation, were used for the transmission of this
report.
Richard Grant, manager of the radio news service,
according to the Editor & Publisher, admitted under oath in
the Dedham court on April 11 that the broadcast concerning
Faber’s supposed escape was false. The report, prefaced in its
broadcasting by the words, "The Yankee News Service has learned
exclusively", had not been verified before it was sent out on
the air, Grant admitted under questioning by Attorney William
R. Scharton, counsel for Faber,
"It was a hoax", Grant said, asked if he had made any
retraction. Grant declared that the District Attorney had
directed him not to.
The purpose of Scharton1 s subpoena of Grant to appear
in court was to show that the false broadcast had prejudiced
the minds of prospective jurors.
Attachment of the property of the Yankee Network News
Service was also sought with the filing of Faber's suit. The
News Service has 21 days in which to file an answer,
XXXXXXXX
CROSLEY WILL EXTEND CONVENTION GLAD HAND
Powel Crosley, past master at entertaining, has been
appointed Chairman of the local Committee at the Cincinnati meet¬
ing of the National Association of Broadcasters in September.
E. M. Spence, of Atlantic City, Chairman of the Conven¬
tion Committee, and Phil Loucks, of the NAB, who visited Cincin¬
nati to look over the ground, are already predicting at least
500 registrations.
X X X X X X
9
7/3/34
BUSINESS LETTER NOTES:::
The exemption from Federal Tax which affects payments
by newspapers to telegraph and telephone companies does not
extend to payments made by radio broadcasting companies to
those systems of communications, the Bureau of Internal Revenue
has ruled.
Station WAAF, owned and operated by the Chicago
Drovers J ournal , burned out in the Chicago stockyards fire,
returned to the air last week with its regular daily schedule.
A new transmitter has been constructed on top of the Exchange
Building at the yards, and new studios have been acquired at
the Palmer House.
Lynne M. Lamm, Washington newspaper correspondent and
radio writer is spending his vacation at Mountainville, Orange
County, New York. This is not far from Cornwall- on- the-Hudson0
Mr. Lamm is accompanied by Mrs. Lamm and will be away about two
weeks.
Mrs. Franklin D. Roosevelt is to be featured July 9
in a broadcast program of the Simmons Company, sponsoring Better
Bedding Week. Her $3,000 fee is to be forwarded to a charity to
be named by Mrs. Roosevelt.
Henry A. Bellows, Chairman of the Legislative Committee
of the National Association of Broadcasters expects to spend the
4th of July in Minneapolis.
In addition to their regular duties, New York City
police radio cars delivered more than 12,000 summonses last month.
XXXXXXXXXX
10 -
7/3/34
PATTERSON, PALEY AND McCOSKER IN WNYC SURVEY
Mayor LaGuardia has named the following prominent radio
executives to survey the facilities of WNYC, the Municipal
broadcasting station, and to report on methods of expanding its
usefulness;
William Paley, President of the Columbia Broadcasting
System; Richard C. Patterson, Jr, , Vice-President and General
Manager of the National Broadcasting Company, and Alfred J,
McCosker, President of the National Association of Broadcasters
and associated with WOR.
Recently the Mayor set January 1st as the expiration
date of a probation period for the station. He indicated that
if its usefulness wasnot fully demonstrated by that time, WNYC
would be discontinued and the station sold.
Mr. Patterson has already made a preliminary survey
of the city station's technical equipment. As a former city
official he is familiar with the city's financial situation and
procedure within city departments.
XXXXXXXX
DECISIONS OF THE FEDERAL RADIO COMMISSION
The Commission did not meet today, either as the
Federal Radio Commission or the Federal Communications Commission.
The following were some decisions handed down on June 29.’
Action Taken On Examiners' Reports
WBOW, Banks of Wabash, Inc., Terre Haute, Ind. , denied
C.P. to make changes in equipment, change frequency from 1310 to
1360 kc. , increase power from 100 w. to 500 w. night, 1 KW day,
unlimited time, sustaining Examiner George HI Hill; WHBY, WHBY,
Inc., Green Bay, Wis. , denied C.P. to make changes in equipment
change frequency from 1200 to 1360 kc. , change power from 100 w.
to 1 KW, unlimited time, sustaining Examiner Hill; WSBT, The South
Bend Tribune, South Bend, Ind., granted renewal of license, 1230
kc. , 500 watts, specified hours, sustaining Examiner Hill; WSBjC,
WSBC, Inc., Chicago, Ill., dismissed C.P. to change location,
install new equipment, change frequency to 1360 kc. , and change
power from 100 w. to 1 KW night, 1^ KW-LS, from special hours to
share with WGES, sustaining Examiner Hill; New, John L. Hopkins,
Hammond, Ind., dismissed application for C.P. for new station to
operate on 1360 kc. , 1 KW, share with WGES, sustaining Examiner
Hill.
11 -
7/3/34
Also, WSBT, The South Bend Tribune, South Bend, Ind.,
granted modification of license to change frequency from 1230 kc.
to 1360 kc., change specified hours to special hours, facilities
vacated by WJKS, 500 watts, sustaining Examiner Hill; WFBM .
Indianapolis Power & Light Co. , Indianapolis, Ind. , granted
modification of license to change hours from specified to unlim¬
ited (facilities of WSBT); 1230 kc. , 1 KW, sustaining Examiner
Hill; WGES, Oak Leaves Broadcasting Station, Inc., Chicago, Ill.,
granted renewal of license, 1360 kc. , 500 watts, 1 KW-LS on
Sunday, Share with WJKS, sustaining Examiner Hill (The effect¬
ive date in the above case is July 13, 1934) ; WJEJ , Hagerstown
Broadcasting Co., Hagerstown, Md. , denied C.P. to make changes
in equipment, change hours of operation from daytime to unlimited
and increase power from 100 w. day to 250 w. day, 50 w. night,
1210 kc. , sustaining Examiner Ralph L. Walker (Order effective
July 6, 1934); NEW - C. C. Morris, Ada, Okla. , granted C.P. for
new station to operate on 1200 kc. , 100 watts, daytime hours,
sustaining Examiner George HI Hill (Order effective July 6).
Action On Cases Heard Before Whole Commission
New, Robert Lowell Burch, Salem, Ore., denied C.P. for
new experimental broadcast station to operate on 1530 kc. , 300
3., experimentally for 2 months, thereafter 1 KW unlimted (order
effective July 13); New - General Television Vorp. , Boston, Mass.,
denied C.P. for new experimental broadcast station to operate
on 1570 kc. , 500 w. , unlimited time (order effective July 13);
also, granted C.P. for new experimental visual broadcasting sta¬
tion to operate on 42000 to 56000, 60000 to 86000 kc. , 200 w. ,
unlimited, except for time division with other license, A3
emission (order effective July 13).
Miscellaneous
WLBW, Broadcasters of Pennsylvania, Erie, Pa.,
reconsidered and granted application for increase in night power
from 500 w. to 1 KW; WTOC, Savannah Broadcasting Co. , Savannah,
Ga. , reconsidered and granted application for increase in night
power from 500 w. to 1 KW; KWCR, Cedar Rapids Broadcasting Co.,
Cedar Rapids, la. , The Commission reconsidered its action of
April 20 and June 26, and ordered that station KWCR be authorized
to use 500 watts daytime power.
XXXXXXXXXX
12
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF JULY 6, 1934c
Prall Communications Commission Status Puzzler . 2
No Cheers From Radio Industry For New Commission . 4
Dill Still Undecided With Regard To Running Againc . . . . 5
Radio Manufacturers' Code Hearing Set For July 23rd . 6
Miss Bellows Weds Philip Pillsbury . 7
Borah WJAR Cutoff Due To Power Breakdown . 8
Business Letter Notes . 9
No More Radio Commission Meetings . 10
U. S. Will G-ive Air Forecasts For Aviators . . . 10
RCA Connects N. Y. And New Orleans - Chicago Next . 11
$200 Television Sets Promised By DeForest . 11
Report Of Broadcasting Applications Received . 12
Music Predominates British Programs . 12
CORRECTION . 12
No. 738
1 ' .
■
PRALL COMMUNICATIONS COMMISSION STATUS PUZZLER
A perplexing riddle on the eve of the organization of
the new Communications Commission is whether or not Hampson Gary,
of Texas, appointed for one year, is only a "straw man" and whether
Representative Anning S. Prall, of New York, will not eventually
become the seventh member of the Commission.
Mr. Prall was appointed to the Radio Commission by Presi¬
dent Roosevelt but never took his seat. Because of the fact that
he was a member of the Congress which created the new Commission,
Prall would not be eligible to serve until his Congressional term
expires January 1st. One theory is that Representative Prall,
who is a personal friend of President Roosevelt, will be appointed
to the Federal Trade Commission, but another persists that he will
later join the Communications Commission.
Color was given to the latter conjecture by the remarks
of Representative John J. O'Connor, of New York, Representative
Hamilton Fish, Jr. , of New York, and others at a luncheon given to
Mr. Prall by the members of the House Banking and Currency Com¬
mittee at the time of his retirement from Congress.
Congressmen are often well informed as to Presidential
appointments, and though the luncheon was held before President
Roosevelt named the Communications Commission, those who spoke at
the luncheon all seemed to take it for granted that Mr. Prall was
to be prominently identified with the new radio deal.
"Representative Prall sometime ago was appointed by the
President and confirmed by the Senate as a member of the Federal
Radio Commission", Representative O'Connor (D) said, "and it is
generally understood that with the consolidation of that Commis¬
sion with the new Communications Commission, he will become a
member of that all embracing body. "
"I like Mr. Prall for many reasons and for the addi¬
tional reason that as soon as he takes over his new radio duties,
I have his definite promise that he will arrange for free radio
service for me as long as I am in Congress", said Representative
Wesley E. Disney (D), of Oklahoma.
"My love for Mr. Prall amounts to more than my respect
for most men. I know him rather intimately and that knowledge
amounts to an enthusiasm, so to speak. It can best be illustrated
by a story we heard the other day concerning two boys in Sunday
School. It illustrates how a man for no special reason at all
will form a judgment of another man and stay by him through all
• '■
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the vicissitudes and tergiversations. The teacher inquired of
one of the boys as to whom God has sent to save the world, and
the boy promptly answered. “President Roosevelt. * The boy
next to him nudged him and said, 'No; it was Jesus Christ. ' The
boy replied, 'Shut up, you damn Republican.'"
"We know that Mr. Prall's appointment to the Federal
Radio Commission is a credit to the great Democratic Party, to
New York City, andRto the grea.t Empire State", Representative
Hamilton Fish, Jr;/' of New York, declared. "We Republicans of
New York State feel it is a signal honor to our State to be
represented on the Federal Radio Commission by Mr. Prall, and it
is our hope that he wrill well look after our domestic affairs."
"While Mr. Prall is leaving Congress, he is entering
upon a field of activity as a member of the Federal Radio Commis¬
sion of equal importance, if not of greater importance, to the
country as a whole, than his Committee on Banking and Currency",
Representative Reilly (D) of Wisconsin, said. "The radio is in
its infancy, and the problems that will have to be solved by the
Federal Radio Commission are just as difficult and vital to the
future of our country as the problems that have been considered
and will be considered by this Committee on Banking and Currency.
"I have no doubt but that Mr. Prall will in his new
position be able to render efficient service to the country and
that his record on the Federal Radio Commission will meet the
highest expectation of his very many friends and admirers and
justify the judgment of the President in selecting him for one of
the most important governmental agencies. "
"Mr. Prall goes to a field of broader opportunity, for
the radio in the shaping of public opinion already is one of the
most powerful influences in our political and social relations.
It is going to become more and more powerful", Representative
Robert Luce (R) , of Massachusetts said. "Personally I am regret¬
ful that we did not follow the English example of keeping the
radio completely under governmental control. We have allowed
it to remain in private hands and have thereby exposed the
country to very serious dangers. I am glad that a man like Mr.
Prall is to be one of those who will in the years immediately
before us secure us not merely more enjoyable entertainment, not
merely pleasure, but shall secure to us an opportunity for the
proper direction of public opinion through the presentation of
both sides of all great issues by men capable of enlightening and
informing the public. "
Finally, in responding to these toasts, Mr. Prall him¬
self said:
"The President has honored me by my selection to fill
an important post, and here again you may be assured of my un¬
selfish devotion to the work of the Commission on which I will
serve, to the Administration that has honored me by appointment,
and to the country which I have served in the past. "
X X X X X X X
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NO CHEERS FROM RADIO INDUSTRY FOR NEW COMMISSION
If there have been any cheers from the broadcasters and
radio manufacturers over the makup of the new Communications Com¬
mission, they have been more of the Bronx character. President
Roosevelt was sharply criticized because of the political
character of the appointments and due to the fact that there is
hardly a single man on the Commission who could technically
qualify as a technical expert on the subject of communications.
The old Radio Commission started out with three out of
five of its members men who really knew something about the radio
business - Admiral Bullard, Chief of Naval Communications;
Colonel Dillon, former West Coast Radio Supervisor; and Henry A.
Bellows, who was then in charge of Station WCCO, in Minneapolis.
But the same could hardly be said to be true with regard to the
Communications Commission. To begin with, five out of seven of
its members are lawyers. Paul Walker ably qualifies as a
utilities expert but G-eorge Henry Payne is an ex-newspaper man.
Judge Sykes, who has made an excellent name for himself,
could, because of his long experience, certainly qualify as a
communications authority. Thad Brown seems to be known more for
his political ability, a Republican able to keep afloat just as
readily in a Democratic Administration. Disappointment was
expressed by many in the industry that Colonel Brown should have
been reappointed to the exclusion of Commissioner Harld A. Lafci _t.
"Admittedly Mr. Lafount was not as good a politician as
Colonel Brown", a radio manufacturer remarked, "but he was
courageous and approached every question from the angle of public
service. Mr. Lafount was also a business man, and had been
engaged in the radio business at the time of his appointment,
which reminds me that there is not a single business man, as far
as I know, on the entire new Commission. They mostly seem to be
lawyers. It means that we will have to educate five new men and
again go through the same performance we went through with the
old Radio Commission and with Congressional Committees having to
do with radio. "
Commissioner Lafount* s only comment when advised that
he had not been reappointed was, "What chance had a Smoot Republi¬
can in the New Deal?"
"There is an absolute lack of geographical representa¬
tion on the new Commission", a broadcaster commented. "Radio,
because of its character, to say nothing of communications,
should be supervised by men from all sections. It was a require¬
ment of the old radio law that each Commissioner had to be a
resident of one of the five radio zones, thus they came from
every part of the United States. In the makeup of the new Com¬
mission, three sections of the United States are not represented.
One Commissioner is from Rhode Island, another from New York,
4
' < : *
r
7/6/34
another from Ohio, another from Mississippi, another from Okla¬
homa, and two from Texas. Thus the great West and Northwest are
unrepresented but instead the South, where radio conditions are
the poorest, and the Southwest are strongly in the saddle."
A prominent Oklahoma utilities man was quoted as say¬
ing that he was delighted with the appointment of Paul Walker,
Chairman of the Oklahoma Utilities Commission.
"We will surely be glad to get him out of Oklahoma
regardless of whom Governor "Alfalfa Bill" Murray appoints as
his successor." The intimation was that Mr. Walker had made
the utilities of that State "toe the mark. "
If it was the intention of the Administration to curry
favor with the newspapers by appointing George Henry Payne, it
may be said that his appointment aroused little enthusiasm upon
the part of several members of the corps of Washington corres¬
pondents who were asked for their opinion of him.
"If I had known they were going to throw jobs around
like that", a correspondent remarked sarcastically, "I'd have
gone after one of them myself. "
Some correspondents, however, did show interest in
whether or not Herbert Pettey, Postmaster General Farley's
protege, is to be named Secretary of the Commission or Director
of Broadcasting. If so, as seems likely, it is almost a forego: e
conclusion that the new Commission will inherit the animosity of
at least two newspapers, the Chicago Tribune , and the New York
Herald Tribune, which hammered the Radio Commission in general
and Mr. Pettey in particular.
The first formal meeting of the Communications Commis¬
sion will be held at 11 o'clock Wednesday morning, July 11th. A
full membership is expected to be present and after the Commis¬
sioners have been sworn in, they will get down to business.
XXXXXXXXX
DILL STILL UNDECIDED WITH REGARD TO RUNNING AGAIN
According to the latest advices from Spokane, where
Senator Dill, of ’Washington, co-author of the Communications Act
is at present spending his vacation, he is still undecided as to
whether or not he will enter the race for re-election. He has
until July 15th to file his intentions. President Roosevelt has
announced that he will return by way of Washington State and
some of Senator Dill's friends believed the impetus the Presi¬
dent's visit might give the Senatorial candidate might cause
Senator Dill to change his mind. Others believed, despite this,
the Senator might decline to make the race.
X X X X X X X
- 5 -
7/6/34
RADIO MANUFACTURERS' CODE HEARING SET FOR JULY 23RD
A hearing on the application of the Radio Manufacturers
for a separate Code has been granted by the National Recovery
Administration and will be held in Washington, Monday morning,
July 23rd. The radio manufacturers are at present operating
under the Code of the Electrical Manufacturers' Industry, and
numerous grounds for exemption from this have been presented to
Gen. Hugh S. Johnson. The principal objection of the radio
manufacturers to the Electrical Code is that the thirty- six- hour
maximum week of the Electrical Code has caused serious problems,
expense and difficulty for radio manufacturers. According to
Bond Geddes, Executive Vice-President of the Radio Manufacturers'
Association, the radio manufacturers have worked under the dis¬
advantages of the thirty-six hour week, losing employees to
other industries which enjoy a forty-hour week. The Electrical
Code is one of the very few having less than a forty-hour week,
and is a severe hardship to radio manufacturers, Mr. Geddes said.
The case of the radio manufacturers will be presented
at the hearing by the RMA Code Committee, of which Capt. William
Sparks, of the Spark s-Wi thing ton Co. , of Jackson, Mich. , is
Chairman, and the other members are James M. Skinner, President
of Philco, Philadelphia; A. S. Wells, President of Wells-Gardner
Co., Chicago;. S. W. Muldowny, President, National Union Radio
Corp., New York City; and Arthur Moss, President, Electrad, Inc.,
of New York City.
It is also expected that Leslie F. Muter, President of
the RMA, of Chicago; Arthur T. Murray, United American Bosch Co,
of Springfield, Mass., and John W. Van Allen, of Buffalo, General
Counsel, of the RMA, will be present at the hearing.
"Our radio code has the unanimous approval of our Board
of Directors", Captain Sparks says addressing RMA members*, "and
also of the recent annual RMA membership convention. It is a
radio and not an Electrical Code, designed especially for our
own industry and, most important, provides for withdrawal from
the Electrical Code and for independence and permanence of the
radio industry and the RMA, We also believe it is one of the
best codes ever presented to NRA and we already have substantial
confidence that we can secure a 40-hour week for our radio
factories and employees."
According to the the radio manufacturers, the few
trade practices of the approved Electrical Code were not drafted
with any consideration of and do not meet the special problems of
distribution and merchandising of radio manufacturers' products.
They are not adaptable to the radio industry and some of them are
unworkable and detrimental. This also applies to many of the
proposed trade practices now under consideration by NRA in pend¬
ing revision of the Electrical Code, Radio manufacturers were
not consulted and have had no voice in the additional trade
- 6
7/6/34
practices submitted to the NRA by the Electrical Code Authority.
The radio manufacturing industry requires special trade pract¬
ices to fit and meet its special problems of distribution and
merchandising, to be coordinated with those of the supplemental
Code submitted by the Radio Wholesalers ' Association, the
national organization of radio jobbers, and recently approved
by the NRA. ,f
The written or telegraphic request for an opportunity
to be heard at the forthcoming Radio Manufacturers' Code Hearing,
must be filed before noon on Saturday, July 21st, with the
Deputy Code Administrator J. G-. Cowling, Room 4017, Department
of Commerce Building, Washington, D. C.
XXXXXXXXXX
MISS BELLOWS WEDS PHILIP PILLSBURY
Of interest to the radio world is the wedding which
took place yesterday (Thursday) afternoon in the Plymouth Congre¬
gational Church in Minneapolis, when Miss Eleanor Bellows,
daughter of Mr. and Mrs. Henry Adams Bellows, became the bride
of Mr. Philip Winston Pillsbury, son of Mr. and Mrs. Charles S.
Pillsbury, of Minneapolis. The ceremony was performed by the
Rev. Harry P. Dewey.
Mr. Bellows is Vice-President of the Columbia Broad¬
casting System. Mr. Pillsbury is of the noted family of flour
manufacturers.
wedding
The/procession was headed by the ushers, who included
the bride's brother, Mr. Charles Bellows, and Mr. Pillsbury' s
brothers-in-law, Mr. John Austin Becker, Jr., of Albany, N. Y. ,
Mr. Oswald Bates Lord, and Mr. Elliott Bates McKee, of New York
City.
Gowns of white mousseline de soie and hats to match,
were worn by the bride's attendants, Miss Louise Marckwald, of
Short Hills, N. J . , maid of honor; and the bridesmaids, Miss
Harriet Sexton, of Grand Rapids, Mich, , and Miss Beatrice Wells,
daughter of Mr. and Mrs. Stuart W. Wells, of Minneapolis.
Three brides in the Pillsbury family had previously
worn the Patou gown of ivory white panne velvet and the veil
which Miss Bellows chose to wear at her marriage. Those young
women are Mrs. Lord (Mary Pillsbury), who was married in Minnea¬
polis in December, 1929: Mrs. McKee (Katherine Pillsbury), whose
marriage took place in Paris in May, 1930, and Mrs. Becker, a
bride of September, 1932.
- 7 -
Li’
7/6/34
For an added remembrance the bride wore the bertha
collar of duchess lace which had elaborated the gown of her
mother, and Mrs. Bellows' mother, the late Mrs. C. R. Sanger,
of Cambridge, Mass.
Miss Bellows was escorted to the altar by her father
and they were met there by Mr. Pillsbury and his best man, Mr.
Robert Watson Pomeroy, of Camden, S. C.
Members of the two families, bridal party, and out-of-
town guests attended a wedding reception following the ceremony
at the William P. Hallowell home at Ferndale, Lake Minnetonka,
where Mr. and Mrs. Bellows have been spending a portion of the
Summer.
Mr. Pillsbury and his bride plan to go East on their
wedding trip and will make their home in Chicago upon their
return.
X X X X X X X
BORAH WJAR CUTOFF DUE TO POWER BREAKDOWN
A rumor in Washington that the speech of Senator
Borah, broadcast through the National Radio Forum, over the
NBC, Fourth of July night had been censored, arose from the
fact that a power breakdown in Providence, R. I., prevented
Station WJAR in that city from broadcasting it. So far as known,
WJAR was the only station out of the 35 to 40 stations in the
National Radio Forum network which did not carry Senator Borah' s
speech. According to an Associated Press dispatch from
Providence, WJAR was off the air from 10:26 p.m. until 11:50,
E.S.T. , and three other programs had to be cancelled in
Providence in addition to the Idaho Senator's speech. Senator
Borah spoke from 10:30 until 11 o'clock.
Oliver Owen Kuhn, Managing Editor of the Washington
Evening Star, in charge of the National Radio Forum programs,
said that Senator Borah expressed himself as perfectly satis¬
fied with the explanation from Providence with regard to the
mishap. K. H. Berkley, Manager of the National Broadcasting
Company in Washington, explained that on a speech Senator
Borah had made two or three months ago, there had evidently
been some misunderstanding with regard to the size of the network
and some persons in the West had missed the speech due to the
fact that stations in their vicinity had not been scheduled to
carry it. Mr. Berkley said the previous incident had no con¬
nection with the Providence breakdown and that both occurrences
had been no fault of the NBC.
XXXXXXXX
8
6/7/34
:: BUSINESS LETTER NOTES
Because of time zone differences under daylight savin'",
the Press- Radio Bureau of the Publishers National Radio Committee
will advance the time of its evening news report, according to
an announcement by E. H. Harris of Richmond, Ind. , Chairman of
the Committee. Beginning July 16, he said, the news report will
be released for broadcast at 6:30 P.M. instead of 9 P.M. , as at
present. The morning broadcast will continue to be released at
9:30 A.M.
Bond G-eddes, Executive Vice-President of the Radio
Manufacturers' Association, and Mrs. G-eddes will go to Virginia
Beach this week for a Summer vacation. They will be accompanied
by their son, (Gail, who has been graduated with high honors from
Dartmouth.
Examiner Walker of the Federal Radio Commission has
recommended that the application of Abraham Shapiro, of Astoria,
Ore. , for a 100 watt station on a frequency of 1370 kc. be denied.
Robert R. McCormick, editor of the Chicago Tribune
asserted at a banquet in honor of Ed W. Howe, noted editor, at
Topeka Kansas, that the act creating the Communications Commis¬
sion 'knd endowing it with all the powers of a star chamber" is
"clearly and unmistakably in violation of the first section of
the Bill of Rights, which, above all things, was intended to
prevent a star chamber in control of speech and the press."
Utica, N. Y. garage owners are tuning in on police broad¬
casts in an effort to get some business from accidents. This
was revealed as a result of towr cars rushing to scenes of acci¬
dents and bidding spiritedly for the right to tow away damaged
automobiles. Sometimes the tow drivers engage in hot words with
one another because of price-cutting tactics.
Two changes in personnel became effective last Monday
at Station WMCA. Stanley H. Chambers resigned as Director of
Sales Promotion to become National Advertising and Promotion
Director of the Hunter G-wynnbrook Distilling Corporation, of
Baltimore, Md. His headquarters will be at 76 Beaver St. , the
New York office.
Bill Williams, former newspaper reporter, recently
on the editorial staff of "Billboard", joined the Press Department
of WMCA and the American Broadcasting System.
XXXXXXXX
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7/6/34
NO MORE RADIO COMMISSION MEETINGS
There will be no more meetings of the Federal Radio
Commission. All pending matters will be passed along to the
Federal Communications Commission which will hold its first
session Wednesday morning, July 11th.
XXXXXXXX
U. S. WILL GIVE AIR FORECASTS FOR AVIATORS
Weather forecasts to aviators will be flashed by radio
telephone every four hours over the Department of Commerce air¬
ways after July 15th.
Planned for 29 stations, including one here and one at
Richmond, Va. , the service will be extended to others when
practicable. It will supplement hourly radio reports of current
airway weather now transmitted throughout the Nation by the
Department's stations.
Rex Martin, Assistant Director in charge of Air
Navigation, explained that forecasts may now be obtained at
airports where there are Department of Commerce communications
facilities. However, it has not been feasible heretofore to
broadcast them in that it would require a long interruption of
the radio range beacon signals upon which airmen rely heavily
during poor visibility conditions.
These signals are cut off during voice broadcasts as
both are transmitted on the same frequency. Now arrangements are
being completed to give the forecasts on another frequency so
they will not interfere with the radio beacon.
The forecasts will go on the air six times daily
immediately following regular 30-minute s-past-the-hour broadcasts
of local weather. ’When the local weather report has been given,
the announcer will notify listeners to turn to another dial for
the forecasts. The radio signals will then be resumed.
X X X X X X X
10 -
. . ..
7/6/34
RCA CONNECTS N.Y. AND NEW ORLEANS - CHICAGO NEXT
An exchange of greetings between Mayor LaGuardia, of
New York, and Mayor T. S. Walmsley, of New Orleans, inaugurated
yesterday (Thursday) a direct RCA radiotelegraph communication
circuit between the two cities,, The New York-New Orleans circuit
is the latest link in the domestic radiotelegraph service of
R. C.A. Communications, Inc., which already connects New York with
Boston, Washington, D. C. , and San Francisco.
"New York City, already the largest center of radio¬
telegraph communications in the w^orld because of its international
radiotelegraph connections, is becoming more important in that
field with the inauguration of RCA* s domestic radiotelegraph
circuits", according to an RCA announcement. "A direct radio¬
telegraphic contact to the international circuits is provided to
cities on the domestic system. Collection and delivery service
of Western Union offices in the cities included in the domestic
radiotelegraph network, in addition to the offices maintained
by RCA, are available to the public for the sending of radio¬
grams. Chicago will next be added to the RCA network, and within
a short time, Seattle, Detroit and Los Angeles, to be followed
later by other important cities. "
XXXXXXXXXX
$200 TELEVISION SETS PROMISED BY DeFOREST
Television receivers will be on the market at from $200
to $250 next year, Dr. Lee DeForest of Los Angeles, inventor of
the radio tube, declared this week in an interview in Montreal.
"There has been a lot of talk", the inventor said, "that
television is still five years away. It is nothing of the sort.
.It has been an engineering possibility for some time and now I
think it is commercially possible."
In the sets which would be placed on the market for
home use, the pictures would appear on a screen approximately
eighteen inches square.
"Television", he declared, "has now been so much improved
that I can pick up outdoor scenes in very bright sunlight with
automobiles of recognizable design passing as far as 100 feet
away. If they are within twenty-five feet of the apparatus they
are reproduced faithfully enough to make the license place
legible. "
XXXXXXXX
11
LI ~
7/ 6/34
REPORT OF BROADCASTING APPLICATIONS RECEIVED
July 5 - James F. Hopkins, Inc., Detroit, Mick., WJBK,
C.P. to make changes in equipment and increase power from 100
watts to 100 watts night, 250 watts daytime; WSFA, Montgomery
Broadcasting Co., Inc., Montgomery, Ala., modification of license
to increase power from 500 watts to 500 watts night, 1 kilowatt
daytime; KGCU, Mandan Radio Association, Inc., Mandan, N. Dak.,
license to cover C.P. authorizing removal of transmitter and
studio and equipment change; WAAF , Drovers Journal Publishing Co. ,
Chicago, Ill., license to cover C.Pp authorizing rebuilding of
station destroyed by fire.
Also, New, Edward Hoffman, St. Paul, Minn. , C. P, to
erect a new station to be operated on 1310 kc. , 100 w. , unlimited
time; WLBL, State of Wisconsin, Department of Agriculture and
Markets, Stevens Point, Wis. , modification of license to change
hours of operation from daytime to from 8:00 A, M. to local sunset;
KGIX, J. M. Heaton, Las Vegas, Nevada, modification of C.P.
authorizing removal of station and new equipment requesting
authority to move transmitter locally and extend dates of com¬
mencement and completion.
XXXXXXXXX
MUSIC PREDOMINATES BRITISH PROGRAMS
The analysis of programs of the British Broadcasting
Corporation for the year 1933 is as follows:
National Regional
Music
Serious . ,
17.9
Light . .
. . . . .26.
38.2
Variety . ,
3,4
Dance Bands . .
. 9.6
11.4
Gramophone Records. . . ,
, 7.2
62.5
7.9
78.8
Drama . . . .
Talks
•
•
®
0
OD
1.8
1.6
1.6
Talks and Readings . „ .
. . . . 7.3
2.5
Education. .......
.5
News and Commentaries. .
. . . . 7.5
220 8
6. 9
9. 9
Religion .
4.7
3.8
3.8
Children1 s Hour ......
. . . . 5.2
5. 2
5. 6
5.6
Special Transmissions . . .
.5
.3
• o
Television. ........
.... 2.5
2. 5
—
—
100.00
100.0
XXXXXXXX
CORRECTION - On page 6 of July 3rd issue, 2nd paragraph -
should read "Mr. Payne isa.member of the Metropolitan Club, etc."
XXXXXXXX
— 12 —
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF JULY 10, 1934.
New Commission Looks Good From Job Providing Standpoint . 2
Eastman-Walker Analogy Reported Pleasing To Roosevelt . 3
Paul B. Klugli Resigns As Zenith V-P. ............. . . . 5
Educators Seek Reasonable Share Of Channels . 5
Judge Sykes Doubtless Holding Tongue In Cheek. . . 6
Columbia Charts Its Market Coverage . . . 7
Bowen Planning GBI Reorganization . 8
A~K Will Promote "Robot" Model . ..9
Business Letter Notes . 10
Questions And Answers Explain RCA Intercity Service . 11
Applications (Broadcasting) Received . 12
No. 739
July 10, 1934
NEW COMMISSION LOOKS GOOD FROM JOB PROVIDING STANDPOINT
It is predicted that the new Communica.tions Commission
organiation will he two, maybe three, times as big as the old
Radio Commission. The organization will be built up gradually,
Commission officials explained warily, depending upon how many
people will be needed to carry out the work in hand. Later when
Congress adds additional duties, more and more people will have
to be taken on.
Enough job seekers have already applied to make up a
Commission personnel of almost any size. However, since the bulk
of those to be appointed will have to pass Civil Service examina¬
tions, the number of eligibles will be greatly reduced. Even so,
tnose seeking positions have been sufficiently large to make life
miserable for Judge E. 0. Sykes, Chairman of the new Commission,
and others who have had to greet them.
The Secretary of the new Commission, the director of
each division, of which there are expected to be three, the
Chief Engineer and the General Counsel and their assistants are
exempt from the Civil Service; also the secretaries to the
Commissioners, but outside of that, others taken on must have
passed the Civil Service examinations.
Apparently the sky is the limit as to how big the organ¬
ization may be. As to this the law reads:
"The Communications Commission shall have authority,
subject to the provisions of the Civil Service laws and the
Classification Act to appoint such other officers, engineers,
inspectors, attorneys, examiners and other employees as are
necessary in the execution of its functions. "
This would seem to make the Commission almost a heaven
for political appointees.
The Radio Commission grew until it became an organizatio
employing 116 persons in Washington, and about the same number in
the field scattered throughout the United States. The last annual
appropriation was approximately $650,000 so that if the expansion
is up to expectations, the Communications Commission will soon be
in the $1,000,000 or more, salary class.
Where the old Radio Commission began its labors "dead
broke" due to Congress failing to pass an appropriation, the
new Commission will have at least a half a million dollars to
draw on from the Radio Commission which it is figured will run
- 2
7/10/34
it until Congress convenes in January, at which time there will
he plenty more from where the first half-million came from.
Insofar as any actual work is concerned, the members
of the new Commission are simply marking time and will continue
to do so until sworn in tomorrow (Wednesday morning) when the
Commission is formally organized.
XXXXXXXX
EASTMAN- WALKER ANALOGY REPORTED PLEASING TO ROOSEVELT
Some interesting sidelights on the appointment of
Paul Walker, Chairman of the Oklahoma Corporation Commission to
the Federal Communications Commission are given by Ed Hadley,
Washington correspondent of the Daily Oklahoman, who is well
acquainted with the new official.
"The expression is understood to have been used at the
White House by the Oklahoma delegation in urging Mr. Walker1 s
appointment that 'Walker will become the Joe Eastman (Federal
Railway coordinator) of theCommunications Commission1", Mr.
Hadley said, "and President Roosevelt is reported to have
replied, 'that's just the kind of a fellow we need.'
"Walker's appointment was the direct result of a
'brain-storm' of Representative Wesley E. Disney, of Oklahoma,
as Disney himself described it a week ago.
"When he first had the idea, Disney went immediately
to the White House and proposed it to the President. He reportea
that Mr. Roosevelt seemed favorable to the idea and telegraphed
Walker that he should come immediately to Washington. The idea
of a trip to the Capital coincided exactly with plans Walker
had already made, to appear before the Interstate Commerce Com¬
mission in a railroad rate case in which Oklahoma was interested,
and he arrived here early in the week.
"Wednesday, Disney called upon the President again,
having obtained the endorsement of every member of the State
Congressional delegation for Walker in the meantime, and came
from the White House reporting that President Roosevelt was
most 'receptive.'
"Then Senator T. P. Gore, of Oklahoma, took a hand in
the matter. He telephoned Postmaster James Farley, Administra¬
tion patronage-dispenser, urging that Walker be appointed, and
asked whether Oklahoma was 'on the black list' as might be
judged from the fact that the State has received no important
positions in the Administration.
- 3
7/10/34
''Disney's drive backed by the entire Oklahoma delega¬
tion, with Senator Gore's caustic interpolation timed just right,
is given full credit for the Walker choice. !i
Mr. Hadley said that about six months ago, Mr. Walker
was discussed for appointment to the Interstate Commerce Commis¬
sion, in a place to be vacated by Ezra Brainerd, Jr. , whose
term of seven years expires January 1st. W. M. W. Splawn, Texas
Democrat, author of the now famous Splawn report, was appointed
to the place.
"When President Roosevelt first tried to telephone Mr.
Walker Saturday afternoon, the call was placed to locate him in
Oklahoma City", Mr. Hadley continued. "There the White House
was advised that he wasin Washington, and finally located him at
the Cosmos Club. He accepted the appointment in a direct tele¬
phone conversation with the President late Saturday afternoon."
Referring to the appointment, the Oklahoma City Times
said editorially, "Paul Walker has grown considerably over the
week-end. Last week he was just a Chairman of theCorporation
Commission of Oklahoma, sadly out-voted by a majority of two
which could be expected to take the play away from him on almost
every occasion. This morning Walker is a member of the new
Federal Communications Commission. This group will have super¬
vising control over the telegraph, telephone and radio facil¬
ities of the nation. His appointment is for a five-year term
at a salary of $9,500 a year. On the State job he has been
drawing $4,000.
"Expert in his knowledge of rates, trained by long
experience in the legal end of the Corporation Commission's work,
a man of great industry and unquestioned integrity, Walker will
be a credit to Oklahoma in his work in ’Washington. "
Whereupon the Times revealed an interesting election
situation in Oklahoma, as follows:
"This is the last opportunity we shall have to use our
hammer on the other Paul Walker, whose name appears on the ballot
you will ponder Tuesday. There is a Paul Walker among the
candidates for Corporation Commissioner. He is a shadow name.
One of his largest assets is the fact that he has the same name
as the present Chairman of the Commission, who has been honored
by advancement to the Washington post. All this publicity on
the Washington position will confuse many voters when they see
Paul Walker's name in connection with the Corporation Commission
on the State ballot Tuesday. The Paul Walker who is on this
Commission, the Paul Walker who is going to Washington, is not
a candidate in this primary. Don't vote for Paul Walker on the
theory that you are voting for a man who has been honored for
his public service with the Corporation Commission. This guy
is trying hard to pull another Will Rogers on the dear people.
We hope he misses by a mile. "
xxxxxxxx
1
7/10/34
PAUL B. KLUGH RESIGNS AS ZENITH V-P
Paul B. Klugh has announced his resignation as Vice-
President and General Manager of Zenith Radio Corporation of
Chicago. Mr. Klugh, however, continues as a Director and
retains his large stock interest in Zenith but will now devote
his attention to several projects in which he and Commander E. F.
McDonald, Jr. , President of Zenith, are jointly interested.
The following officers were elected upon the resigna¬
tion of Mr. Klugh - Commander McDonald, President, who now
assumes the duties of General Manager; Hugh Robertson, Executive
Vice-President and Treasurer; E. A. Tracey, Vice-President in
Charge of Sales; Arthur Freese, Secretary; R. D. Burnet,
Assistant Treasurer, and Assistant Secretary; and Samuel Kaplan,
Assistant Treasurer and Assistant Secretary.
XXXXXXXX
EDUCATORS SEEK REASONABLE SHARE OF CHANNELS
The following resolution was adopted by the National
Education Association which met in Washington last week:
"Legislation should be enacted which will safeguard
for the uses of education a reasonable share of the radio broad¬
casting channels of the United States. State and national
school officials should develop the technics for using the
radio effectively in education. "
Speaking of some of the unsolved problems, Dr. Tracy
F. Tyler, Secretary of the National Committee on Education by
Radio, addressing the educators, said:
"The problems faced by radio in the United States
are much more complicated than those in other countries. Many,
if not most of them are still unsolved. In most of the other
countries radio is controlled either by government or by some
quasi-public authority and it is supported through the sale of
listeners’ licenses. Education in many countries being central¬
ized, the broadcasting of educational programs has likewise been
centralized. In England all school broadcasting is carried on by
the British Broadcasting Corporation under an organization known
as the Central Council for School Broadcasting. This insures
a continuity of programs, the use of the hours found best for
the broadcasts, and the elimination of any difficulties concern¬
ing the broadcasting of advertising into the schools.
"In the United States the control of education has
from the beginning been left to the states. For that reason
educational broadcasting has never been centralized. Some broad¬
casts for schools have been provided by the commercial chains but
5
. ' s
St ' :
.i.v - ’ •
7/10/34
have not been under the auspices of the responsible educational
authorities. Only in a few of the states, such as Ohio, Wis¬
consin, North Carolina, Oregon, Iowa, Michigan, and Kentucky,
have the possibilities of radio for school use been explored.
Educators, generally, believe that the responsible state educa¬
tional authorities must either be permitted to set up adequate
broadcasting facilities of their own wirh sufficient time and
power to satisfactorily serve their citizenry or else suitable
hours on commercial stations should be set aside and guaranteed
as to permanence so that they can accomplish the desired results.
When these conditions have been met educators will make a more
extensive use of the radio in broadcasts for both school pupils
and adults,
"However, even with the more or less formal types of
educational radio taken care of, there is another important
factor which must be considered. Most of us would probably
agree that all radio programs are educational or cultural.
That does not mean that they all have positive value. They may
be of no value at all or may even be of negative value. For
that reason we should all be interested in the whole curriculum
of radio, not merely in those programs presented by educational
agencies. Radio, like the motion picture, is having a tremen¬
dous effect upon the attitudes, the ideals, and the apprecia¬
tions of all radio listeners.
"If, therefore, radio is to serve the best interests
of all the people, old and young, literate and illiterate alike,
more attention must be given to eliminating many of the present
radio programs. Certainly the false claims of many advertisers
and the numerous undesirable programs being broadcast cannot be
justified either from the standpoint of public welfare or as
making a positive contribution to the raising of cultural
standards. These are a few of the problems which we as educa¬
tors, and others who belong to the so-called "intelligent
minotiry" must aid in solving, "
XXXXXXXXX
JUDGE SYKES DOUBTLESS HOLDING TONGUE IN CHEEK
Doubtless Judge E. 0. Sykes, nev; Chairman of the Com¬
munications Commission, is holding his tongue in his cheek with
regard to the outcome of the race former Governor Bilbo, of
Mississippi, is making for the Senate. Bilbo’s chief opponent
is Senator Hubert D. Stephens, of Mississippi, who is backed by
Senator Pat Harrison,
Governor Bilbo appointed Judge Sykes to the Mississippi
Supreme Court and Stephens and Pat Harrison were responsible for
his appointment to the Radio and Communications Commissions.
XXXXXXXX
6
7/10/34
COLUMBIA CHARTS ITS MARKET COVERAGE
The latest study undertaken by the Columbia Broadcast¬
ing System, "Markets in Radio Homes", has been attractively
printed and illustrated for distribution to the trade. This
report is a practical application of Columbia's recent analysis
entitled "Vertical Study of Radio Ownership 1930-33. "
"We determined the distribution by income levels of
various higher-priced commodities", John J. Karol, Director of
Market Research for Columbia explained. "Having learned the
distribution of radio homes by income levels we were able to
provide authentic data regarding the degree of coverage of
various markets which radio broadcasting over a Columbia coast-
to-coast network provides."
Twenty commodities have been listed by Mr. Karol and
the percent of the entire market which, according to his tabula¬
tion lies in radio homes reached by Columbia follows:
Women' s Shoes over $10
84.1$
Men's Shoes over $10
79. 9$
Women's shoes under $10
64.3$
Men's Shoes under $10
65. 5$
Men' s Suits over $50
83. 3$
Men's Suits under $50
63.3$
Watches over $25
80.0$
Watches under $25
64. 8$
Sterling Silverware
80.4$
Plated Silverware
67.9$
Automobiles over $3,000
86. 3$
Automobiles $2, 000- $3, 000
84. 6$
Automobiles $1,000~$2,000
76.0$
Automobiles under $1,000
67.4$
Paints and Varnishes
68.1$
Electric Refrigerators
67.4$
Electric Washing Machines
60. 9$
Electric Vacuum Cleaners
63. 9$
Cameras (except Box type)
78.1$
Life Insurance
72.8$
The average coverage of these 20 commodity markets
by the Columbia network is 71.8$, Mr. Karol's tabulation sets
forth. The average coverage of these markets by the other
media shown, such as a "typical" weekly magazine, a "typical"
monthly magazine, 10 class magazine, is 14.9$ - nearly a 5-to-l
differential in favor of radio.
X X X X X X X X
- 7 -
7/10/34
BOWEN PLANNING GBI REORGANIZATION
A reorganization of Group Broadcasters, Inc, , the co¬
operative organization formed last February to help clear up the
transcription field and to present group station selling to
advertisers, will take place shortly, according to Billboard
Magazine , which continues:
"Expected result will be two organizations where one
is now, with Scott Howe Bowen, who was a prime GBI mover and who
owns the corporate title, continuing in business under that
name, and other members of the organization setting up a new out¬
fit. This decision was reached by the Executive Committee of
GBI at a meeting in New York a short time before reports were
published that the GMI members were going to finance their own
production studios after the failure of a deal for a merger with
World Broadcasting Studios.
"The proposed WB-GBI deal was only one of several that
didn't happen. Another deal whereby GBI would enter the
production phase of transcription broadcasting involved Electri¬
cal Research Products, Inc., Western Electric, and a banking
group, financing, would obtain a controlling interest inGBI.
Latter rejected it because of the controlling interest phase.
A stock sale to the affiliated stations, said to have been pro¬
posed by Bowen, was likewise rejected. It is claimed that after
the stations had first okehed the financing plan they switched
after reconsidering.
"It is proposed that the new organization will be
further stabilized in the chaotic e. t. field and thereby render
a greater and better service to all concerned, advertisers and
stations alike. A principal hope of GBI had been to realign
transcriptions into three broad fields, production, group and
spot sales.
"Financing by GBI of itself for going into production
involved Scott Howe Bowen's Byer Studios and equipping that
laboratory with Western Electric equipment. Bowen last week
moved out of his Chrysler Building suite of offices into Byer
labs. Bowen had devoted, since GBI was formed, the greater part
of his time to that project. His present plans, he said, were
to work under the GBI name instead of as before, Scott Howe Bowen.
"GBI had been holding meetings fairly regularly in the
merger connection. Next meeting, it is hoped, will be lined up
for Chicago at the end of July. Chicago was selected since most
of the confabs have been held in New York.
"Set up of GBI had been John Shepard III (Yankee net¬
work) , President; Bowen, Sales Manager; Chester Dunham, General
Manager; A. A Cormier, W0R? Chairman of the Executive Committee,
8
I
7/10/34
which also included Arthur Church, KMBC, and I. A. Lounsberry,
WGR-WKBW. GBI had sold one contract to Chrysler motors and
had $3,000,000 worth of estimates.
,!It is generally agreed that when NBC and CBS went into
the transcription field, no aid was offered thereby to OBI. "
XXXXXXXX
A-K WILL PROMOTE "ROBOT" MODEL
The Atwater Kent radio organization will introduce a
new receiver which tunes from station to station at proper inter¬
vals during the day to suit the owner's taste in programs - shuts
off at bedtime and turns on again in the morning as an alarm
clock.
As explained by Orrin E. Dunlap, in the New York Times ,
the face of an electric clock is above the tuning dial. Radiat¬
ing from the rim of the clock are tiny holes. They represent
the quarter hour periods and serve as the connection links be¬
tween the tuning mechanism and the timepiece.
The "robot" tuner has sixteen outlets in the form of
miniature telephone switchboard cords, two to each of seven sta¬
tions, and providing for fourteen different program periods,
with two extra cords for intermission periods. The cords are
plugged into the holes at the desired program period and the
machine then operates automatically shifting from station to
station and program to program, stopping itself and starting
again exactly as scheduled. If the self-tuning mechanism is not
turned on it operates like any other radio receiver.
Fourteen different programs can be pre-selected over a
twelve-hour period on seven stations. Only two programs to a
station can be pre-selected if the choice is spread across the
seven stations.
Mr. Kent addressing his distributor and dealer organiza¬
tion at Atlantic City expressed the conviction that "we are past
the bottom and on the way up. It would be very bad for business
to improve too rapidly, as this might cause an unpleasantly
strong recession. But I don't think it is going to improve
rapidly, but rather steadily and soundly. There may be minor
set-backs, but the trend is certainly upward. "
The Atwater Kent broadcasts under the direction of
Josef Pasternak will be resumed in the Fall and it is expected
that the company will enlarge its advertising and promotion
budget.
X X X X X X X
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7/10/34
: 2 : BUSINESS LETTER NOTES
The recent and substantial reduction secured by the
Radio Manufacturers' Association on shipments of tubes has been
made national in effect, according to of ficial- advices to Vice
Chairman 0. J. Davies of the RMA Traffic Committee. It is
estimated that savings to tube manufacturers will run into many
thousands of dollars each year.
The Rev. Giuseppe Gianfrancheschi, 59 years old has
just died after a long illness, in Rome. He was widely known as
director of the Vatican's modern radio station. Father Gian¬
francheschi also was director of the Vatican's ultra short-wave
apparatus installed by Guglielmo Marconi and the first commercial
set of its kind in the world.
It would be discouragement enough for an ordinary
individual to have his radio stations closed down by the Govern¬
ment of two countries, but old Doc. Brinkley "goat gland"
specialist is endeavoring to stage a comeback by running for
nomination of Governor of Kansas on the Republican ticket. He
was twice unsuccessful as an independent candidate but in one
case piled up an amazingly large vote.
John J. Karol, of New York, Director of Market Research
for Columbia, has just returned from a six weeks' trip to the
Pacific Coast.
WTAR, Norfolk, Va. , has been added to the National
Broadcasting Company networks.
The Annual Electrical and Radio Show will be held
September 19 to 29 at Madison Square Garden.
A facsimile transmitter for WOR is being built by the
Freed-Eisemann Radio Corp. at Long Island City. Installation is
expected to be made within a few weeks so the station can conduct
tests after midnight on its regular wave. Later it is planned
to use a short wave under the 10-meter range.
XXXXXXXXXX
- 10 -
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QUESTIONS AND ANSWERS EXPLAIN RCA INTERCITY SERVICE
Sent with the compliments of William A. Winterbottom,
Vice President and General Manager of R. C.A. Communications,
Inc, , is a readable little primer setting forth in question
and answer form details of the new Intercity Radiotelegraph
service "Via RCA" in connection with Western Union now avail¬
able between New York, San Francisco, Washington, Boston,
New Orleans and soon to be extended to other cities.
The following questions and answers are typical of
many which appear in the book.
"Q. - What, if anything, do the advantages of Radio mean
to me?"
"A. ~ Here are concrete examples of the economy of radio'
telegraph service between New York and San Francisco, "Via
RCA" :
15 Word Fast Messate
Via Wire . . . $1. 63
Via RCA ...... „ 1.20
Saving . $ ". 43
60 Word Dayletter
Via Wire ...... . $2.16
Via RCA ...... . 1 . 80
Saving ....... . $ .36
15 Word Nite Message
Via Wire . $.72
Via RCA . 60
Saving . $. 12
100 Word Dayletter
Via Wire, . #3.60
Via RCA . . . 3.00
Saving. „ . . . . $ . 60
Similar savings between other RCA points. "
"Q» «- Why do you quote on a 15 word basis when wire tele¬
graph is on a 10 word basis?"
"A. - RCA believes the 15 word basis is the modern basis
for domestic telegraph communication. Business becomes more
complicated every day. The 15 word basis provides 50$ more
opportunity to transmit complete specifications, detailed quota'
tions and other information which is commonly an important
element of urgent, telegraph communication. Think of the
frequent occasions when you have had either to pay for extra
words or leave out some information of importance."
"Q. - Is this new service reliable?"
"A, - Yes - for these reasons^ RCA has had fourteen years1
experience in the international radiotelegraph field. It oper¬
ates forty, high speed circuits connection the United States
with as many different foreign countries. Many of those cir¬
cuits are thousands of miles long, yet their operation at
speeds up to two hundred words per minute is an every-day
occurrence. By the speed and reliability of its service in
the international field, as well as by its economy, RCA now
handles a substantial part of all transatlantic telegraph
traffic and a major portion of the transpacific traffic. If
Ji-
7/10/34
RCA can do this in the international field, surely it can do it
over shorter distances in the domestic field."
"Q,t, - Are radiograms broadcast like radio programs?"
"A0 - No; the principle is entirely different. In radio
communication the energy from powerful transmitters is concen¬
trated into narrow bands and directed, like searchlight beams,
on the distant receiving stations, where similar technic is
employed to receive the individual beams to the exclusion of
others. "
XXXXXXXXXXX
CORRECTION
In the June 22nd issue it was inadvertently stated
that F. P. Guthrie, District Manager in Washington of the RCA,
had successfully passed the test for an amateur's license.
"Where do you get this amateur stuff?" Mr. Guthrie
inquires.
And rightly so, because it was a commercial operator's
license which Mr. Guthrie, formerly an expert telegrapher,
secured. The RCA has been granted a permit to build a point-to-
point commercial station in the Capital and the law requires
that the one in charge of such a station shall have a commercial
operator's license, Mr. Guthrie now has this and is all set to
go.
R. D. H.
xxxxxxxxxx
APPLICATIONS (BROADCASTING) RECEIVED
The Federal Radio Commission has received the following
broadcasting applications:
July 5 - Irving D. Sisson, Pittsfield, Mass., C.P. for
new station on 950 kc. , 1 kw, daytime; transmitter site to be
determined at or near Pittsfield, Mass; studio located Park hotel,
Pittsfield, Mass. ; WNYC , City of N. Y. , Dept, of Plant and
Structures, New York, Y. modification of license to increase
power from 500 watts to 1 kw; WJAR, The Outlet Co. , Providence,
R. I. , extension of special experimental authority to use
additional power at night and 250 watts (licensed already 250 w.
night, 500 daytime) for regular license period 9/1/34 to 3/1/34;
KGNF, Great Planes Broadcasting Co. , North Platte, Nebr. , modi¬
fication of license to increase power (day) from 500 watts to
1 kw; KVOS, KV0S? Inc. , Bellingham, Wash., license to cover C.P.
to move transmitter and studio locally.
X X X X X X X
- 12 -
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
i fi&LdaL .. i ;4. | i . ;L '
IQ) ll (f) 1.1 li \j [; 'll
Fli JUL 16 1934
16 13
, &
INDEX TO ISSUE OF JULY 13, 1934,
Commission Believed Buckling On Sword For A. T. & T . 2
Old Commission Sings Quota Swan Song . 4
Dill Exit Would Mean New Communications Chairman . 6
Commission Meets Again Tuesday . 7
Broadcasting Code Still Under Advisement
Raguet Becomes Assistant Naval Communications Officer
Federal Trade Commission Summons 12 Radio Advertisers . .....9
Business Letter Notes . 11
Schuette N.A.B. Representative Music Code Hearing, . 11
Mackay Radio Sets Site of 1,100 Acres
12
CD 00
■
• •
.
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....
.
July 13, 1934.
COMMISSION BELIEVED BUCKLING ON SWORD FOR A. T. & T.
The appointment of a man the type of Paul D. P.
Spearman as General Counsel by the new Federal Communications
Commission, is believed to be the first step in what is predict¬
ed will be a very vigorous investigation of the American Tele¬
phone and Telegraph Company. It is freely prophesied that if
and when the Commission's investigation of the Telephone Company
gets under way, Mr. Spearman will play a leading part and the
merciless cross-examining, for which he is known, may put his
opponents sharply on the defensive.
There is a vast difference between Mr. Spearman's
annual government salary of $9,000, and that of the General Coun¬
sel of the A. T. & T. who receives something like $60,000. It
was said, however, the acceptance of the position of General
Counsel of the Communications Commission by Spearman is a dis¬
tinct sacrifice and that his private practice paid him several
times the salary he will receive from the Commission.
Regardless of the size of his salary, Mr. Spearman is
pointed to as one of the most brilliant trial lawyers in
Washington, and according to a man well acquainted with his
ability, "no one who has been cross-examined by Paul Spearman
has yet asked for a return engagement. In my opinion, he is
one of the best qualified men in the United States for his new
position as General Counsel of the Commission. 11
Mr. Spearman is 36 years old, a native of Mississippi
and came to Washington in January, 1929, to join the Legal
Division of the Federal Radio Commission. He left his position
with the Mississippi Railroad Commission to accept the position
with the Radio Commission. He resigned as Senior Associate
General Counsel of the Radio Commission in September, 1931, and
reentered the private practice of law in Washington in partner¬
ship with Thomas P. Littlepage and John M. Littlepage.
While with the Radio Commission, Mr. Spearman acted as
its chief trial counsel and was responsible for the handling of
appeal cases. It is said he has tried more radio cases than
almost any other man and that no case which he tried as ever been
reversed by an appellate court.
While serving as counsel for the Radio Commission he
was drafted by the United States Department of Justice to prosecu
criminal violations of the Radio Act, having prosecuted the case
of United States vs. Fellows at St. Louis, Missouri, in 1930.
Fellows was charged with operating an unlicensed broadcast
2
7/13/34
station, was indicted, convicted and sentenced to serve three
years in Leavenworth Penitentiary, but was deported without being
required to serve the sentence. This was the first indictment,
trial and conviction under the Act. In every case prosecuted by
Mr. Spearman, a conviction resulted, one who knows him said.
Mr. Spearman was active in Democratic politics in
Mississippi before coming to Washington, having served as Chair¬
man of his County Committee from 1920 to 1924 and as a member of
the State Democratic Committee from 1924 to 1932. He actively
supported President Roosevelt1 s nomination and rendered valuable
assistance in this direction at the Chicago Convention. After
the Convention he gave much of his time to furthering the election
of the Democratic candidate for the Presidency.
Herbert L. Pettey, Secretary of the new Commission,
a hold-over from the old Radio Commission, at the same time
represents the Democratic National Committee in radio matters
for which he has been widely criticized.
''Thus'1, one critic contended, "the ruling party's
’contact man1 with the broadcasting companies is the Secretary
of the Radio Commission which holds the power of life and death
over every broadcasting station in the land.
"If the Secretary of the Interstate Commission were
named by the Democratic National Committee to ask free passes for
politicians on the railroads, the case would be analogous. "
"By his selection of the personnel of the new Communica¬
tions Commission, President Roosevelt makes it plain that he has
no fault to find with the radio censorship that has existed, and
wants the present political control continued and extended to
telegraph and -telephone " , the New York Herald- Tribune writes
editorially. "He retains the leading members of the old Radio
Commission, as a clear indorsement of their policies. He adds
no one of distinguished abiliti^ and in one of the Republicans
named, Mr. G-eorge Henry Payne, he has chosen a politician unadorn¬
ed. The President could scarcely have made his desire clearer to
have Mr. Farley rete,in his supervision of the board through his
Mr. Pettey. "
Also Pettey, mho is only 29 years old, is charged math
being the middle man when allegedly at White House suggestion, the
Commission changed its vote three times in the Shreveport case.
When Louis Howe, Presidential secretary, got the Radio Commission
job for Pettey, he is credited with having remarked that the White
House thus would be able to keep track of what was going on in
the Commission*
3 -
7/13/34
Unless tlie Administration separates Pettey from the
National Committee work, he will unquestionably continue to
cause bricks to be heaved at the Commission,, However, Pettey,
who handled the radio arrangements in the Roosevelt campaign, is
apparently so strongly intrenched with Farley that he can do no
political wrong. Before the political good luck hit him, he
was a salesman for RCA Phototone, Inc., later merged into RCA
Victor. Pettey sold theatre talking picture outfits for the
RCA in Kansas City, Detroit and Washington. Apparently now that
he is in political life, this Radio Corporation part of his
career has been stricken from the official record available at
the Commission.
"Pettey probably doesn't want anyone to know he was
ever connected with the trust", someone observed. He was
also once a salesman for Metro-Goldwyn.
Mr. Pettey, a native of Kansas City, received his
academic training at the University of Kansas. His office at
the Commission is usually besieged Dy visitors political and
otherwise and anyone who expects to wait to see Pettey is
advised to take his lunch along.
XXXXXXXX
OLD COMMISSION SINGS QUOTA SWAN SONG
The last official act of the Federal Radio Commission
was to give out a summary of broadcasting facilities assigned
ZONE 1
s and States so
that the
new Commission
would know exact-
: it stood. The
summary
follows :
State
Quota Units
Quota Units
Due
Assigned
under or over
Connecticut
4.48
4. 14
-0. 34
Delaware
0.67
0.53
-0.14
D. C.
1.35
1. 60
40.25
Maine
2.22
2. 21
-0.01
Maryland
4.55
5. 55
4-1.00
Massachusetts
11.84
11.46
-0.38
New Hampshire
1.29
0. 93
-0. 36
New Jersey
11.26
9.36
-1.90
New York
35.07
39.24
4-4.17
Rhode Island
1.91
1.40
-0.51
Vermont
1,00
0. 72
-0. 28
P. R.
4. 30
1.10
-3. 20
V. I.
0.06
—
-0.06
Total
80.00
78.24
-1. 76
4
ZONE 2
ZONE 3
ZONE 4
ZONE 5
Quota
, Units
Quota Units
State
Due
Assigned
under or over
Kentucky
7.50
8c, 50
4*
i c 00
Michigan
13.89
11.02
—
2.87
Ohio
19.07
20 „ 94
1.87
Pennsylvania
27. 63
27.41
-
0,22
Virginia
6. 95
10.55
4
3. 60
West Virginia
4. 96
5.83
4
0.87
To tal
80.00
84. 25
4
4.25
Alabama
7.37
7.02
—
0.35
Arkansas
5.16
7.42
4-
2. 26
Florida
4.09
9.00
4-
4. 91
Georgia
8.10
9. 11
1.01
Louisiana
5. 85
10. 90
4
5.05
Mississippi
5. 60
3. 40
2. 20
North Carolina
8. 82
10. 35
4*
1. 53
Oklahoma
6. 67
8. 54
4
1.87
South Carolina
4.83
3.05
1.78
Tennessee
7.29
13. 70
4
6.41
Texas
16.22
24. 29
4-
8.07
Total
80.00
106. 78
f26. 78
Illinois
22. 52
27. 98
4
5.46
Indiana
9.56
8. 97
-
0.59
Iowa
7.30
12. 93
4-
5. 63
Kansas
5.55
6. 54
-4
0. 99
Minnesota
7.57
9. 35
>
1.78
Missouri
10. 71
12.79
4*
2.08
Nebraska
4.06
7.83
i
3.77
North Dakota
2.01
3. 30
+
1.29
South Dakota
2.05
2. 89
4
0.84
Wisconsin
8.67
8,74
- t
0.07
Total
80.00
101, 32
f 21.32
Arizona
2. 83
2. 68
—
0.15
California
36. 86
40.87
4
4.01
Colorado
6.72
9.59
+
2.87
Idaho
2. 89
3. 25
4
0.36
Montana
3. 49
4.05
4
0.56
Nevada
0. 59
0. 70
t
0.11
New Mexico
2. 75
4.03
1.28
Oregon
6.19
9. 91
-v
3.72
Utah
3. 30
6. 60
4
3. 30
Washington
10.15
15.76
i
5. 61
Wyoming
1.46
0.80
0.66
A3, a ska
0. 38
0. 48
4
0.10
Hawaii
2.39
1. 94
0.45
Total
80.00
100. 66
+20, 66
5
7/13/34
DILL EXIT WOULD MEAN NEW COMMUNICATIONS CHAIRMAN
The announcement of Senator Dili at Spokane last
week that he will retire at the end of his present term.
January 1, 1935 (originally elected in 1922) will mean a new
Chairman of the Senate Interstate Commerce Committee which
has jurisdiction in the upper branch of Congress over communi¬
cations.
Senator Dill, who was the co-author of both the Radio
and Communications Acts, succeeded Senator Couzens as head of
the Interstate Commerce Committee since the advent of the
Roosevelt Administration. Ordinarily a change of chairmanship
doesn't mean so much but in view of the fact that the Com¬
munications Commission is to submit a report to Congress in
February and will probably initiate additional legislation,
who the new Chairman of the Interstate Commerce Committee is
to be will be of vital importance.
The next man in line to succeed Senator Dill is
Senator Ellison D. Smith, veteran legislator from South Carolina,-,
Senator Smith, now 70 years of age, is the second oldest Senator
in point of service, being succeeded in length of service only
by Senator Borah, of Idaho.
Inasmuch as Senator Smith previously has served as
Chairman of the Interstate Commerce Committee and now is Chair¬
man of the Senate Committee on Agriculture, coming from an
agricultural state and agriculture being a subject very dear to
his heart, the question is raised as to whether or not he would
accept the Interstate Chairmanship*
In that case, the second person in line to succeed
Senator Dill would be Senator Burton K. Wheeler, of Montana.
However, Senator Wheeler is up for re-election this year with
the usual chances of his face also being missing next session.
If re-elected, and if accepting the Chairmanship, Senator
Wheeler, a Progressive, would probably play even a more vigor¬
ous role, insofar as the Communications industry is concerned
than did Senator Dill.
Senator Wheeler is Chairman of the Indian Affairs
Committee, is ranking member of the Agriculture Committee,
the chairmanship to which he would succeed if Senator Smith
accepted the Interstate Commerce Committee, and is third in
seniority on the Manufactures Committee.
In case Senator Smith declined the Chairmanship, and
either Senator Wheeler declined it or was not re-elected, the
third man in line would be Senator Rob Wagner, of New York.
6 -
\
Senator Wagner is Chairman of the Public Lands and
Surveys Committee, third in line for the Banking and Currency
Chairmanship, and fifth on the Foreign Relations Committee.
Senator' Alben Barkley, of Kentucky, would be the
fifth to succeed Senator Dill in the Interstate Commerce Chair¬
manship and Senator Neely, of West Virginia, the sixth.
XXXXXXXX
COMMISSION MEETS AGAIN TUESDAY
The Federal Communications Commission will hold its
second meeting Tuesday morning, July 17th. The regular meet¬
ing days have not as yet been decided upon. In fact, little
business was transacted at the first session on Wednesday,
July 11th, which lasted only about thirty minutes.
The National Broadcasting Company and the Columbia
Broadcasting System were given temporary authority to continue
sending programs to Canada. The new law, aimed at Dr„
Brinkley’s station since closed down in Mexico, prohibits broad¬
casts originating in studios here being sent to foreign
countries for the purpose of being rebroadcast in the United
States. Brinkley maintained a studio just across the border
in Texas where his broadcasts originated.
Judge E. 0. Sykes, Chairman, said that for the time
being the Commission was more or less studying the whole situa¬
tion as a preliminary step towards organizing the different
divisions in charge of the specific work set forth in the
Communications Act. These groups will concern themselves
with broadcasting, telephone and telegraph but Judge Sykes said
he wasn’t sure whether those would be two or three divisions
and that the number would probably be decided at the next meet¬
ing.
The Commission, Judge Sykes said, had authority to
regulate rates and he hoped if there were cases where they
were too high, they would be lowered. However, such a thing
could not be done immediately. As a preliminary step the
Commission would first have to call for rates and charges now
in vogue by the Communications companies and study them care¬
fully to determine whether they are too high or too low. The
matter of evaluations might take months, and maybe years. The
opinion was expressed that the first six months' work of the
Commission would be preliminary and more or less intangible,
perhaps merely an assembling of facts.
Judge Sykes would not commit himself as to any pro¬
posed investigation of the American Telephone & Telegraph
Company but said the law gave the Communications Commission
the authority to investigate this company, as it did others,
if the Commission chooses to do so.
7
7/13/34
The first meeting of the Commission was cut short
when an army of photographers and newspaper correspondents
swooped down upon them. By the time the snapshooting and inter¬
viewing had been concluded; the luncheon hour had arrived and
Judge Sykes called it a day by adjourning a week hence in order
to give the new Commissioners a chance to "get their feet on the
ground11 and to accustom themselves to Washington1 s well known
"summer resort" weather.
The Commission has taken over the Radio Commission
quarters in the new Post Office Department Building at 12th and
Pennsylvania Avenue. The telephone number., District 1654,
remains unchanged, the switchboard operator when called respond¬
ing "Communications".
The old seal of the Radio Commission has been brought
up to date by adding telegraph poles and wires and has been
adopted as the official Communications Commission seal. It
also includes a carrier pigeon so that all forms of communica¬
tion are taken care of.
All the personnel of the old Commission has been
retained on a temporary basis for sixty days' at least.
XXXXXXXXX
BROADCASTING CODE STILL UNDER ADVISEMENT
The NRA has not as yet been heard from with regard to
the Broadcasters' Code on the labor and wage provisions.
While there is nothing tangible to base the opinion
on, it is felt that there is a general let-down in the NRA
during the present transitory state of its affairs.
XXXXXXXXX
RAGUET BECOMES ASSISTANT NAVAL COMMUNICATIONS OFFICER
Commander E. C. Raguet has relieved Commander B. V.
McCandlish as Assistant Director of Naval Communications of the
Navy Department.
Commander McCandlish first served in the Office of the
Superintendent of Naval Radio Service beginning in 1916, as
District Communication Office, then again in charge of naval
shore radio stations in 1927, and finally in 1932, as Assist¬
ant Director.
- 8 -
7/13/34
Commander Raguet served as District Communication
Officer; Fifteenth Naval District, beginning in 1915, and again
in the Fourteenth Naval District in 1919; Communication and Radio
Officer, Destroyer Squadrons, Battle Force in 1921; Communica¬
tion Officer, Navy Department in 1924; Atlantic Coast Communic, -
tion Officer in 1925, and as Head of Radio Division, Bureau of
Engineering, in 1928.
XXXXXXXX
FEDERAL TRADE COMMISSION SUMMONS 12 RADIO ADVERTISERS
The Federal Trade Commission has summoned 12 national
radio advertisers to appear in Washington next week to justify,
if they can, what appears to be false and misleading claims
in their advertising.
The names of the advertisers summoned have not been
made public. They are the first radio advertisers to come under
the provisions of an order recently issued by the Trade Commis¬
sion.
Beginning July 1, all radio stations were requested
to, and are now sending to the Trade Commission copies of all
commercial broadcasts. These are being examined by the Special
Board of Investigation, and all advertisers that appear to be
making false or misleading statements over the air will be noti¬
fied and proceeded against in the same manner as advertisers
using newspapers and magazines to publish their advertisements.
"The spirit of the radio industry, so far expressed,
discloses a sincere desire to cooperate with the Commission in
eliminating false advertising, and they have every reason to
give such cooperation", said E. J. Adams, Chief of the Special
Investigation Board of the Trade Commission.
"The Commission thoroughly appreciates this fine under¬
standing and cooperation on the part of the managers of radio
broadcasting stations.
"For lack of information, the general public may not
appreciate the work done, and being done by the Federal Trade
Commission to maintain open channels of competition prevent
fraudulent practices, and unfair methods, and protection of the
buying public.
"Action by the Commission to put a stop to these
offending advertisements over the air will be of great value
to all radio station managers, and the industry as a whole.
9
r, ) :
r •
■
■ ■ ; •
• • -
■
.
• ■
7/13/34
Unless this false advertising over radio facilities is ended;
the value of radio advertising will be utterly destroyed, and
the industry as a whole with a few rare exceptions, will suffer
a great loss.
"The Federal Trade Commission has power to issue Cease
and Desist orders against advertisers that are using unfair
methods to induce the public to buy. Such orders are enforce¬
able by the Federal courts.
"In recent years, over 600 radio stations have been
organized, and are now in operation. Many advertisers that
were refused space in magazines and newspapers have resorted to
broadcasting their advertisements over the radio. If the
buying public is to be protected, and listener confidence built
up or maintained, false advertising on the air must be stopped.
"Thoughtful managers of radio stations realize the
value of listener confidence, and only by having this are their
facilities of value to advertisers. Competition between radio
stations to secure advertising contracts is very keen. The
stations need the revenue, and without it cannot survive.
Therefore, it puts many managers 'on the spot' when advertis¬
ing copy must be permitted to go on the air over his station,
or refused, and the money he sorely needs, lost."
The Trade Commission hearings, such as the 12 radio
advertisers will participate in, result in nearly every case
in a stipulation that binds the advertiser to cee.se and desist
making any false or misleading statement, and particularly to
stop making the specific representations that are found to be
misleading. Upon approval of such stipulations, the matter is
closed without prejudice to the right of the Commission to re¬
open it at any time.
If the advertiser refuses to quit making the false
representations found by the Commission to be false or mislead¬
ing with the capacity and tendency to deceive the buying public,
complaints are issued, and the matter is prosecuted in the formal
way.
It was explained that lessthan three per cent of the
cases handled by the Special Board of Investigation result in the
issue of complaints. The rest are either closed without action,
and the data filed for future reference or disposed of by
stipulation.
XXXXXXXX
10 -
7/13/34
: BUSINESS LETTER NOTES:::
Former Gov. Norman S. Case, of Rhode Island, Republi¬
can, and personal friend of President Roosevelt, is one of the
most distinguished of the new Communications Commissioners.
Although of different height, he reminded one observer of
John V. L. Hogan, noted radio engineer.
Fred Weber, Vice-President in Charge of Operations
and Station Relations of the American Broadcasting System, has
returned to his headquarters in the WMCA Building, New York,
from a trip through the Middle West where he contacted stations
and agencies on proposed extensions of the new network.
The application of Rev. C. C. Morris, of Ada, Okla. ,
for a 100 watt station, to be operated on 1200 kilocycles,
daytime hours, has been granted.
XXXXXXXX
SCHUETTE N.A.B. REPRESENTATIVE MUSIC CODE HEARING
The Music Publishers Code hearing has been set for
Thursday, July 26th at the Washington Hotel, Washington, D. C.
The broadcasters will file proposed amendments to the song
plugging provisions of the Code and will be represented by
Oswald F. Schuette.
Mr. Schuette also represented the independent
aluminum interests in an action which resulted in the decision
by which the United States Circuit Court of Appeals at New York
reversed the acquittal of the Mellon aluminum monopoly at New
Haven, Conn. , last December, and ordered a new trial for the
$9,000,000 triple damage suit brought by the Baush Machine
Tool Co. , of Springfield, Mass.
"The aluminum decision marks a turning point in the
enforcement of the anti-monopoly laws", said Mr. Schuette. "It
does not only chart the route for the Government prosecution
of this monopoly, as well as of all other violators of the
anti- trust laws, but it makes plain and simple the rights which
the victims of all trusts have to sue these monopolies for
triple damages. No other decision in anti- trust history has
swept away at one stroke so many of the technical barriers which
monopoly lawyers have built in the lower courts to prevent
private litigants from getting the protection which Congress
gave them in the Sherman and Clayton laws."
XXXXXXXX
- 11 -
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7/13/34
MACKAY RADIO GETS SITE OF 1,100 ACRES
An 1,100-acre tract, virtually the entire Arbuckle
estate at Smithtown, L. I. , has been leased by the Mackay Radio
and Telegraph Company for the construction of a new and exten¬
sive short-wave wireless centre that eventually will become the
l!hub" of the organization’ s transmitting activities on the
Atlantic seaboard, it was revealed by Ellery Stone, Vice~Presidentt
It is expected that the new operating site will be "on
the air" some time this Fall and gradually take over the opera¬
tions of the Mackay plant at West Sayville, leased from the
United States Navy Department.
"The plot at Smithtown will become the centre of all
our transmitting activities on the Atlantic Coast, and will
afford us adequate space to increase facilities in the expansion
of short-wave domestic and international radio telegraph cir¬
cuits", said Mr. Stone. "Extensive equipment will be installed.
We will utilize high povirer and all the up-to-date apparatus,
controlled by wire from the International Telephone and Tele¬
graph Building, 67 Broad Street, thirty-eight miles from Smith-
town.
"Tests are under way to examine the feasibility of
installing an ultra- short- -wave radio link between our New York
operating room or central and the plant at Smithtown, to supple¬
ment or replace the wire lines."
The site is ten times as large as the present one at
West Sayville.
"The transition from Sayville to Smithtown will require
two or three years for completion", said Haraden Pratt, Vice-
President and Chief Engineer, who will supervise the construction.
"We will erect many short-wave aerials. Our receiving station
will be continued at Southampton, L. I."
xxxxxxxx
12
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL- Not for Publication
INDEX TO ISSUE OF JULY 17, 1934,
Communications Commission Organizes Three Divisions., . 2
New Divisional Communications Commission Set-Up . .3
Capital To Have Conscience Voice . 5
Predice Less Animosity To Commission Than NRA . 6
Education Gets 50-50 Break, Aylesworth Declares . 7
Says President Took Farleyesque Commission View . . . 8
Business Letter Notes . 09
Apprehensive Of Too Numerous Administrative Agencies . 10
Announcer Criticized For Reading Complaint Over Air . 11
Applications Received By Communications Commission. ....... 11
Some Recent NBC New And Renewal Accounts . 12
No. 741
July 17, 1934
COMMUNICATIONS COMMISSION ORGANIZES THREE DIVISIONS
The Federal Communications Commission organized its
Division Tuesday, (July 17) in keeping with the Communications
Act. Three divisions composed of three members each were created,
with Chairman E. 0. Sykes serving on each Division. The divisions
and personnel follow:
Division #1 - Broadcasting
Commissioner Hampson Gary - Chairman
Commissioner Thad Brown - Vice Chairman
Commissioner Sykes
Division #2 - Telegraph
Commissioner Irvin Stewart - Chairman
Commissioner George Henry Payne - Vice Chairman
Commissioner Sykes
Division #3 - Telephone
Commissioner Paul Walker - Chairman
Commissioner Norman S. Case - Vice Chairman
Commissioner Sykes
The Broadcast Division will exercise jurisdiction over
all matters relating to or connected with broadcasting.
The Telegraph Division will have and exercise juris¬
diction over all matters relating to or connected with record
communication by wire, radio or cable, and all forms and classes
of fixed and mobile radio-telegraph services and amateur services.
The Telephone Division will have jurisdiction over all
matters relating to, or connected with telephone communication
(other than broadcasting) by wire, radio or cable, including all
forms of fixed and mobile radiotelephone service except as
otherwise specifically provided for.
The whole Commission will have jurisdiction over all
matters not otherwise specifically allocated to a division; over
all matters which fall within the jurisdiction of two or more of
the divisions established by this order; and over the assignment
of bands of frequencies to the various radio services. In any
case where a conflict arises as to the jurisdiction of any divis¬
ion or where jurisdiction of any matter or service is not
allocated to a division, the Commission will determine whether
the whole Commission or a division thereof will have and exercise
jurisdiction, and if a division, the one which will have and
exercise such jurisdiction.
- 2
7/17/34
The Broadcast Division will hold its first meeting
Wednesday morning, July 18; the Telegraph Division will meet at
10 o'clock Thursday morning, July 19; the Telephone Division
will meet Friday at 10 o'clock, July 20.
Next week the Broadcasting Division will meet at
10 o'clock on Tuesday, the Telegraph Division at 10 o'clock on
Wednesday, and the Telephone Division on Thursday at 10 o'clock.
These will probably be the regular meeting days of the Divisicnsc
It was reported that the positions of W„ D. Terrell,
Chief of the Field Division, and Ford G-reaves, Assistant Chief
Engineer had been reclassified, and that their salaries had been
reduced. Terrell, who is the oldest radio man in point of ser¬
vice in the country, having been one of the two original radio
inspectors of the United States, is understood to have been
reduced from $8,000 to $5,600 a year, and Ford Greaves from
$7,500 to $4,000. The latter is said to be slated for a radio
inspectorship at San Francisco. Both are Republicans.
XXXXXXXXX
NEW DIVISIONAL COMMUNICATIONS COMMISSION SET-UP
The following radio services and classes of stations
were allocated to the three divisions established by the new
Communications Commission, as follows:
I. _ To the Broadcast Civision
Service
Class of station
Broadcast
Broadcast
Temporary Broadcast Pickup
Experimental Experimental Visual Broadcast
Experimental Relay Broadcast
Experimental Broadcast
General Experimental (1)
Special Experimental (1)
(l) All matters relating to or connected with this class
of station concerning the development of apparatus for
any service assigned to the Broadcast Division.
Aviation
2, To the Telegraph Division
Aeronautical
Aeronautical Point-to-point
Airport
Aircraft
Aviation Public
3
Aeronautical
Aircraft
• N
■: -
:
■j-j-ih y vi = '
V . !
■ ■■ Xr
7/17/34
Service
2. To the Telegraph Division ( Cont ’ d)
Class of station.
Public Coastal
Private Coastal
Experimental
Geophysical
Fixed Public
Fixed Private
Emergency
Agriculture
Marine Relay
Mobile Press
Coastal Telegraph
Coastal Harbor (Telegraph)
Coastal Telephone (2)
Coastal Telegraph
Coastal Harbor (Telegraph)
Coastal Telephone (2)
General Experimental (3)
Special Experimental (3)
Geophysical
Point-to-point Telegraph
Point-to-point Telephone (2)
Point-to-point Telegraph
Municipal Police
State Police
Special Emergency
Marine Fire
Point-to-point Telegraph
Marine Relay
Mobile Press
Fixed Public Press
Point-to-point Telegraph
Amateur
Amateur
Temporary
Motion Picture
Ship
First Class (4)
Second Class (4)
Third Class (4)
(2) Stations in Alaska only
(3) All stations of this class except those assigned by
designations (1) and (6) to the Broadcast Division
and Telephone Division respectively.
(4) Except ship telephone stations connecting through
coastal telephone stations with the public telephone
network.
7/17/34
3. To the Telephone Division
Service
Class of station
Fixed Public
Point-to-point Telephone
Public Coastal
Private Coastal
Experimental
Ship
Coastal Telephone (5)
Coastal Harbor ( Telephone) ( 5)
Coastal Telephone (5)
Coastal Harbor ( Telephone) 1 5)
General Experimental (6)
Special Experimental (6)
First Class (7)
Second Class (7)
Third Class (7)
(5) Except stations in Alaska
(6) All matters relating to or connected with the
research, development and operation of public
telephone service.
(7) Ship telephone stations connecting through coastal
telephone stations with the public telephone network.
XXXXXXXXXX
CAPITAL TO HAVE CONSCIENCE VOICE
In addition to a secret voluntary non-paid force of
traffic violation spotters in the National Capital, Major E. W.
Brown, Chief of Police, will have as an aide in the safety
campaign the so-called "Voice of Conscience1'. The "voice" will
consist of an automobile painted white and equipped with a loud¬
speaker. It will be manned by two traffic officers who will
cruise the streets spotting traffic violators and whispering words
of caution or reproval into a microphone. The loud-speaker will
send their voices booming down the street so that all persons
within a radius of a block or more will hear the warning.
The special car is now being painted at a Detroit motor
car factory and is scheduled to be delivered not later than
July 25. After the car’s arrival, it will have to be equipped
with a microphone and loud-speaker, but Major Brown said it
probably would make its debut about August 1.
Cincinnati already has started a similar campaign and
its "voice of conscience" made an initial appearance on the
streets there recently. An Associated Press dispatch said there
were many "red faces" as a result of the car's activities.
XXXXXXXX
5
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7/17/34
PREDICT LESS ANIMOSITY TO COMMISSION THAN NRA
The origin of the mandatory order in the Communications
Act to go thoroughly into service contracts is traced to the act-
ive interest of Congressional leaders and applies principally to
the relationship between the Western Electric Company and the
Bell System," according to the New York Times.
"The second report required results from the opposition
by telegraph interests to the leased wire and telephone- typewriter
services of the American Telephone and Telegraph Company, while
the third is an outgrowth of opposition, on the part of the
Postal Telegraph Company, to the contracts between the Western
Union Telegraph Company and numerous railroad companies", the
Times goes on.
"Thus the Commission finds itself, to some extent, an
arbiter between the competing communications interests, where
serious consideration of the problems will be required for
equitable solution. While the Commission may not have the final
word, its reports will have considerable weight.
"Communications leaders predict that less animosity
and a greater spirit of conciliation will be displayed by the
wire chiefs in the hearings before the new Commission than appear¬
ed when the NRA proposed to dictate a code for the telegraph
industry.
"Bringing of the Western Electric contract before the
new Commission, together with similar contracts of lesser
importance affecting other carriers, also will be a momentous
development. The issue has been raised frequently in State
telephone rate cases, and in the Illinois Bell Telephone Co.
case, which was decided recently against the company by the
Supreme Court.
"In that case, however, the United States Supreme Court
did not pass on the merits of the Western Electric contract, which
had been approved by the lower court in all respects save for one
price advance in 1930. When this contract last appeared before
the highest court, in a Southwestern Bell Telephone rate case many
years ago, it was sustained by the Supreme Court."
"Officials of communications companies do not believe
that the Commission will find it possible to reach any definite
conclusions within the next six months as to how the Act should
be modified.
"In addition, there is a vast amount of routine work
and investigations to be conducted, any of which probably will
require some months to complete. "
XXXXXXXX
- 6 -
July 17, 1934.
EDUCATION GETS 50-50 BREAK, AYLESWORTH DECLARES
Apparently having in mind that the new law makes it
obligatory for the Federal Communications Commission to investigo -3
a proposal that Congress, by law, set aside certain frequencies
for the broadcasting of educational, religious and other non¬
commercial programs, M. H. Aylesworth recently discussed the
educational broadcasting situation at considerable length.
"We have over 20$ education on our networks, that is,
programs that definitely have educational purpose", Mr. Aylesworth
explained. "We have 30$ more of programs that have educational
value. That makes 50%, That leaves 50$ for entertainment. Educa¬
tion gets a 50-50 break, therefore, over our networks."
Pointing to various examples of educational value of
radio, broadcasting executive warned against attempting to move
too swiftly to utilize all the possibilities and observed, "We
have got to experiment. In order to learn to swim, we must swim.
So in order to learn to broadcast, we must broadcast."
"I have long believed that we have not been utilizing
the force of education by radio to its greatest advantage", Mr.
Aylesworth said. "There is something to be said for the newness
of the medium. For over 200 years there has been going on the
development of the technique of teaching in the classroom. Compar¬
ed to this, our experience with radio has spanned only a few short
years. It takes time to even train an individual to use this new
medium; how much longer it must take to train whole groups of
teachers to make effective use of it. As broadcasters, we invite
you to join with us in bringing about the most fruitful use of
tnis new medium. As teachers, you are asked to share this respons¬
ibility with us.
"We have put every kind of subject on the air to interest
listeners", the NBC executive remarked. "Politics, government,
economics, psychology, philosophy, art, literature, music, voca¬
tional training, law, home economics, and many others. Efforts
have been made to publicize these programs - extensive lists of
organizations have cooperated by bringing them to the attention of
their membership. Printed bulletins, bibliographies, and reprints
of lectures have been made available.
"Thousands have written us their appreciation of these
efforts. We consciously tried to do a good educational job with the
child and the grown-up - with your help we will do a better job.
"Thousands of school systems receive our daily programs,
while more than 50,000 schools, representing over 6,000,000 childr-
listen each week to Walter Damrosch and the NBC music appreciation
hour.
- 7 -
7/17/34
11 Individual school systems have sought and are using
the local facilities of our associated stations in many states
and cities. We know the limitations of the radio lesson. We
know, however, that it supplements and vitalizes any subject whio>
a teacher is struggling to make interesting to a group of young
people. It can supply the intellectual urge to make us go on and
study for ourselves, which I suppose is the highest accomplish¬
ment of any teacher.
,!We have yet only touched upon the significance of this
means of mass communication as a boon to mankind. In America
we are making it a means of public enlightenment. We are proud
to join forces with this association to make that purpose more
certain and secure. "
XXXXXXXX
SAYS PRESIDENT TOOK FARLEYESQUE COMMISSION VIEW
Expressing the belief that politics dominated the
appointment of the Federal Communications Commission, the New York
Herald- Tribune appears convinced that it was done deliberately.
"Thus the Democratic party faces its first election
under the New Deal with a deck of cards much to its liking", the
newspaper goes on. "Faith in the radio as a means of political
argument has dwindled somewhat. The press still remains the main
source of political ideas and the center of political debate.
But for what it is worth, Mr. Roosevelt retains control of the
radio. Just what his commission can do to the newspapers through
its control of telegraph wires and the telephone remains to be
seen. The threat is there and calls for alert watching.
"That threat will remain as long as the controlling
board is kept a political body. We have already expressed our
opinion upon this point. We think the issue of such vital con¬
cern to the cause of a free press and free political debate that
we wish to reiterate our view. It is that only by elevating the
Communications Commission to the level of a high and impartial
court can the threat of political censorship be ended. We
regret that President Roosevelt has taken the Farleyesque view
of the issue. He may gain something temporarily in radio effect¬
iveness for the coming New Deal campaign. What he may thus gain
will be more than offset, we are confident, by the dangerous
threat to American free speech which he now adopts as his con¬
sidered policy. "
XXXXXXXXX
- 8 -
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7/17/34
• • •
BUSINESS LETTER NOTES.; : :
Bank loans of the International Telephone and Tele¬
graph Corporation and associated companies were about $31,000,000
on June 30, comparing with $34,500,000 at the end of 1933, and
$40,500,000 at the close of 1932. The corporation’ s banking
credit here, which was reduced from $27,000,000 to $24,960,000
in 1933, has been further reduced to $25,920,000 as of June 30,
and the due date has been extended to Feb. 1, 1935.
"Roxy" (S. L. Rothafel", radio pioneed will make his
debut over the Columbia network starting September 15, in his
first sponsored series of programs. He will be heard from 8:00-
to 8:45 P.M. , ED3T, each Saturday. The programs will be sponsored
by Fletcher's Castoria.
A. L. Alexander, chief announcer of WMCA, of the
American Broadcasting System, io on his first vacation in ten
years of radio broadcasting. He and Mrs. Alexander are in the
White Mountains in New Hampshire.
The Rodin Publishing Company, 200 West 57th St. , New YorL
City, mail make its bow in the publishing field when it mall issue
its first book, "So-o-o-o You’re G-oing on the Air]" by Robert
West, director of the nemrly formed Radio Arts Guild of America
and associate director of the League for Public Discussion. The
Rodin Publishing Company intends to specialize on the subject of
radio and broadcasting.
The American Telephone & Telegraph Co. reports for the
six months ended June 30, net income of $61,999,195, equivalent
to $3.32 a share on the outstanding capital stock. This compares
with $66,224,134, or $3.55 a share for the first six months of
1933.
John S. Young, only NBC announcer with an LL.D. degree,
has been invited to lecture at Oxford University. Younr, who,
for the past academic year, has been a lecturer on radio at New
York University, sailed last week for England. The announcer
will then go to Oxford where he will engage in research and
where he will deliver several talks about American broadcasting.
The NBC announcer was invited to Oxford by Sir Henry
Penson, K.B.E., LLC D. , Warden of the King’s English.
X X X X X X X X
9
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7/17/34
APPREHENSIVE OF TOO NUMEROUS ADMINISTRATIVE AGENCIES
The judicial branch of the Government is being "rapidly
and seriously undermined" by increasing powers delegated by
Congress to the growing number of administrative agencies, a
special committee of the American Bar Association, headed by
Louis G. Caldwell, former General Counsel of the Federal Radio
Commission declared. Among the additional members are Felix
Frankfurter, of Cambridge, Mass. , and others.
"Federal administrative agencies exercising judicial,
in combination with legislative and executive powers, are obliter
ating essential lines of our Government structure", the report
said, "and for the original classic simplicity, are substituting
a labyrinth in which the rights of individuals, while preserved
in form, can easily be nullified in practice. "
Presenting tentative conclusions to be considered at
the Association' s annual meeting in Milwaukee next month, the
committee recommended divorcing the judicial functions of admin¬
istrative agencies from their legislative and executive functions
the abolition of so-called independent commissions and simplifica
tion of the procedure and practice of such agencies and corpora¬
tions as, for example, the 17 created under Title I of the NIRA
alone .
"It becomes hopeless for the average citizen to attempt
to understand his Government", the committee found.
Creation of a "Federal administrative court" was pro¬
posed.
In its conclusion, the report stated:
"Administrative tribunals with judicial power are
courts in fact; without adequate judicial review of their decis¬
ions they are, potentially at least, courts controlled by the
Executive or by the Legislature.
"To the extent that courts are permitted to fall under
such control poignant lessons of history have been forgotten, and
a fundamental condition to the administration of justice, i.e.,
the principle of judicial independence, has been sacrificed. "
The tremendous volume of administrative orders issued
in the past year by NRA and the other new agencies far exceeds
all the Federal statutes since 1789 and makes the presumption
that every citizen knows the law "more than violent", the report
stated.
X X X X X X X
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7/17/34
ANNOUNCER CRITICIZED FOR READING COMPLAINT OVER AIR
As a result of a WJSV announcer in Washington reading
a letter of complaint over the air, which he had received from
a listener, a listener in wrath wrote the following letter to
the Washington Post :
"I have always been under the impression that radio
stations welcomed criticism from listeners, but I would be
very reluctant to address WJSV of this city, after the dose
handed out to one of that station's listeners who recently
criticized the manner and attitude of one of its announcers,
Arch McDonald.
"The letter was read over the air by McDonald and
was ridiculed by him. Mr. McDonald, in addressing the radio
audience, stated 'Ladies and gentlemen, and Mr. Van Sant.',
indicating that the writer of the critical note was no gentleman.
11 This is not the first blunder that can be charged to
this funny sports announcer, and as the writer of the letter
referred to stated, 'this fellow, McDonald, should be curbed
or Station WJSV will lose many friends. 1 "
XXXXXXXXX
APPLICATIONS RECEIVED BY COMMUNICATIONS COMMISSION
July 16 - WHDH , Matheson Radio Co. , Inc. , Boston, Mass. ,
modification of license to increase hours of operation from
daytime to unlimited with power of 1 KW until sunset at Denver
and 500 watts thereafter; WCNW, Arthur Faske, Brooklyn, N. Y. ,
modification of C.P. as modified, authorizing move of trans¬
mitter, installation of new equipment and increase in daytime
power requesting changes in equipment and extension of commence¬
ment and completion dates; Dudley J. Connolly, Chattanooga, Tenn.
C.P. to erect a new station to be operated on 1420 kilocycles,
100 watts, unlimited time; WSFA, Montgomery Broadcasting Co.,
Inc., Montgomery, Ala., modification of license to determine
operating power by direct antenna measurement (corrections made);
Lakeland Broadcasting Co. . Lakeland, Fla., C.P. to erect a new
station to be operated on 1200 kilocycles, 100 watts, unlimited
time; Carolina Radio, Inc., Anderson, S. C. , C.P. to erect a
new station to be operated on 1200 kilocycles, 100 watts, unlim¬
ited time.
Also, WREC , WREC, Inc., Memphis, Tenn., extension of
special experimental authorization to operate with power of 1 KW
night, 2-| KW daytime, for period 9/1/34 to 3/1/34; WTRC , The
Truth Publishing Co. , Inc. , Elkhart, Ind. , consent to voluntary
assignment of license to Truth Radio Corp./ KSO , Iowa Broadcast¬
ing Co., Des Moines, la., modification of C.P. authorizing
installation of new equipment, move of transmitter and increase
in daytime power to 500 watts.
XXXXXXXX
7/17/34
SOME RECENT NBC NEW AND RENEWAL ACCOUNTS
RENEWAL _ Northam Warren Corp ( Cutex and/or Odorono), 191
Hudson St. , New York, N. Y. ; AGENCY - J. Walter Thompson Co. ,
New York City; Started June 22, 1934; Fridays 9:00-9:30 PM EDT;
Networ - WJZ WBZ WBZA WBAL WMAL WHAM KDKA WGAR WCKY TOS KWK
KWCR WREN KOIL KSO CFCF WSYR WSM WSB WAP I WSMB WKY WFAA WOAI KGO
KFI KGW KOMO KHQ KOA KDYL; Program - "Let's Listen to Harris" -
Phil Harris and his orchestra, Leah Ray, Commercial talk given
by "The Fashion Reporter";
RENEWAL - Pacific Coast Borax Co. (20 Mule Team Borax),
51 Madison Ave. , New York City; Agency - McCann-Erickson, Inc. ,
MadisonAve. , New York City; Started July 5, 1934, Thursdays,
9:00-9:30 P.M. EDT; NETWORK _ WJZ WBZ WBZA WBAL WHAM KDKA WGAR
WJR WLW WLS KWK WREN KWCR KOIL KWO WMAL WSYR; Program - "Death
Valley Days" - Dramatization of Pioneer life in Death Valley, Cel.
NEW -AC Spark Plug Co., Flint, Mich.; Agency - Campbell
Ewald Co. , Detroit, Mich; Started June 23, 1934, Saturdays,
10:00-10:15 PM EDST; Network - WEAF WTIC WTAG WEEI WJAR WCSH WFI
WFBR WRC WGY WBEN WCAE WTAM WWJ WLW WK3F WMAQ KSD WHO WOW WOC
WDAF CRCT CFCF WTMJ KSTP WEBC WDAY WRVA WWNC WFLA WSM TOC WSB
WAP I WSMB WSOC WKY KTHS WBAP KPRC WOAI KOA KDYL KGYL KGO KFI KGW
KOMO KHQ KTAR; Program - "Raymond Knight and his Orchestra".
RENEWAL - Bristol-Myers (Drugs), 75 West St., New York City
Agency - Benton & Bowles, New York City; Started July 4, 1934;
Wednesdays 9:00-10:00 P.M. EDST, 12:00-1:00 midnight, EDST;
Network - 9-10 WEAF WTIC WWJ WEEI WJAR WTAG WCSH WLIT ‘WFBR WRC
WGY WBEN WCAE WTAM TOW WMAQ KSD (WOC WHO 9:30-10) WOW WDAF WTMJ
KSTP WEBC WRVA WPTF WIS WJAX WIOD WSM WMC WSB WSMB KVOO WKY
(WFAA 9-9:30) KPRC WOAI KT3S; 12-1:00 KGO KFI KGW KOMO KHQ KOA
KDYL* Program - "Hour of Smiles", large musical, Fred Allen,
Lennie Hay ton' s orchestra, guest stars.
NEW - The Studebaker Sales Corp. of America, Soudh Bend, Ind. ,
Agency - Roche, Williams & Cunnyngham, Inc., Chicago, Ill; Started
July 9, 1934; Mondays 8:00-8:30 PM EDST, 1:00-1:30 AM EDST; Net¬
work - 8:00 WEAF WEEI WTIC WJAR WTAG WCSH WFI- WLIT WFBR TOC WGY
WBEN WCAE WTAM WWJ WSAI WMAQ KSD WHO WOC WOW WDAH ; 1- KGO KFI KGW
KOMO KHQ KOA KDYL; Program - "Studebaker Champions" - Richard
Himber and orchestra.
NEW - Malted Cereals Co. (Maltex) Burlington, Vermont;
Agency - Samuel C. Croot, Co. , New York City; Starts Sept. 2,
1934, Sundays 5:00-5:30 P.M. EDST; Network - WEAF WEEI WTIC WJAR
WTAG WCSH WFI- WLIT WFBR WRC WGY WBEN WCAE WTAM WWJ; Program -
"Little Known Facts about Well Known People", Dale Carnegie.
XXXXXXXX
12
•• • r*
/
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF JULY 20,
Communications Chairman Disavows Press Censorship . 2
Radio Wholesale Trade Submits Code Budget.
Would Permit Massachusetts Station To Move
To Seek Complete Information On The Telegraph Business . 7
New Commission Acts Upon Middle Western Applications . 8
Broadcasting Division Organizes . 9
Commission Girds Itself For Telephone Investigation. . 10
Starbeck Suit Filed. . . 11
Business Letter Notes . 12
No. 742
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July 20, 19340
COMMUNICATIONS CHAIRMAN DISAVOWS PRESS CENSORSHIP
Speaking at the first public gathering attended by
members of the Federal Communications Commission, Chairman E. 0.
Sykes vigorously denied that there had ever been any intention of
either the old Radio Commission or the new Communications Commis¬
sion to exercise a censorship on the newspapers.
"There never has been any desire to do this", Judge
Sykes continued, "and there never will be. There is nothing in
the Communications Act to warrant the censorship accusation and
if there were, I can assure you the Commission would have no idea
of exercising it.
"It all seems very remote and I have never understood
what the basis of the censorship charges were or why there should
have been so much excitement about it."
The occasion for the gathering which Judge Sykes address¬
ed was an "initiation dinner" at the Burning Tree Country Club in
Washington last Tuesday given to the new Communications Commission
and dedicated to "Ye Goode Olde Public Interest, Convenience
And/Or Necessity. "
The attendance was made up largely of newspapermen,
lawyers who practice before the Commission, and Washington repre¬
sentatives of communications organizations. Martin Codel and Sol
Taishoff, editors of Broadcasting, were Chairmen of the Arrange¬
ments Committee.
In addition to Judge Sykes, all the other Commissioners
were present - Col. Thad Brown, of Ohio; Paul A= Walker, of
Oklahoma; former Gov. Norman S. Case, of Rhode Island; Dr. Irvin
Stewart, of Texas; G-eorge Henry Payne, of New York, and Hampson
Gary, of Texas. Also former Radio Commissioners James H. Hanley,
Harold A. Lafount and Judge Ira E. Robinson. Another guest was
M. H. McIntyre, one of President Roosevelt's secretaries.
The menu (a la Kilocycle) was as follows :
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7/20/34
Antenna Celery Dill-Rayburn Pickles Olives New Deal
* * #
Fried Maryland Chicken aux Allocation
Synchronized Potatoes Corn aux Static
* * *
Lettuce and Tomato Salad
Network Dressing
# -si-
ice Cream Deviation
Cakes Farley
* * *
Mocha Heterodyne
Mint Juleps (500,000 Watts)
Suterne (10 Microvolts per meter)
Champagne ( Cro s s- talk )
William Hard, broadcaster of political events and well-
known Washington correspondent, as toastmaster injected a Gridiron
dinner spirit into the affair by good-naturedly razzing each of
the Commissioners as he introduced them. A typical introduction
was that of Commissioner Payne, somewhat along this line:
"George Henry Payne began his preparation for a Com¬
munications Commissionership by taking a special course in the
New York College of Pharmacy. He succeeded so well in that he
became a student in the New York Law University. The law profes¬
sion proved so promising that Mr. Payne became the proprietor of
a small newspaper at Long Branch.
"This was so successful that he got a job as an editorial
writer on the New York Commercial Advertiser. Our hero was so
successful in that position that he became musical and dramatic
critic on the New York Evening Telegram. Mr. Payne was so success¬
ful as a dramatic critic on the Telegram that he became a political
writer on the New York Evening Post. This qualified him to become
a lecturer on history at Cooper Union*
"Mr. Payne then decided to enter politics and was one
of the campaign managers for President Theodore Roosevelt in 1912,
and floor manager for Gen. Leonard Wood in 1920. He was a candi¬
date for the New York Assembly in 1908, a candidate for U. S.
Senator in the primaries against James S. Wadsworth and wound up
as a member of the New York City Tax Commission.
"I now introduce to you Mr. George Henry Payne, pharma¬
cist, lawyer, newspaper publisher, editorial writer, musical and
dramatic critic, political writer, lecturer, presidential
campaign manager, N. Y. Assembly candidate, U. S. Senate candi¬
date, New York Tax Commissioner, and a Republican member of the
Federal Communications Commission appointed by the Democratic
President Franklin D. Roosevelt. "
3
7/20/34
Mr. Payne, who is a medium- sized chubby man, has the
appearance and manner of speech of what is known as a typical
"New Yorker" and wears a moustache and a goatee, seemed about as
pleased at the introduction as if he had been dropped from the
top of the Empire State Building. Payne, nevertheless, proved
well able to take care of himself and lost no time going back
at the toastmaster.
"I am only prevented from responding properly by the
fact that I am limited to a tomato juice diet", Mr. Payne said,
"while Bill Hard is drinking cocktails. However, I may have some¬
thing to say when the tomato juice ban is lifted. I was surprised
to be called upon to speak because when I heard that Hard was to
be the toastmaster, I assumed that, as usual, he would do all
the talking. "
Mr. Payne became so realistic in what appeared to be
sarcastic remarks about Mr. Hard that many began to believe that
he had taken personal offense at Hard's remarks. What most of
those present did not know was that the two men were old friends
and their performance was only part of the show.
Hampson G-ary, who has the polish which only the diplo¬
matic service can give, and who would be rated a first class
after dinner speaker in any company, fared considerably better
than his colleague. Nevertheless he remarked, "I never had
an introduction quite like that before and don't know yet whether
you are serious or whether you are kidding me."
Introducing Commissioner Irvin Stewart, late of the
Treaty Division of the State Department, Mr. Hard said, "Dr.
Stewart has been a technical advisor at all of the recent inter¬
national radio conference. A technical advisor at an inter¬
national conference, I might explain, is a "man whose advice
nobody takes."
Dr. Stewart, who is a finished product of the State
Department, is soft-spoken and quite youthful in appearance, and
was on his feet less than a minute. Commissioner Case, tall,
with iron-gray moustache and easily the most distinguished in
appearance of any of the new group deftly applied the subject of
Communications to telling the diners what Margot Asquith, wife
of the former British premier, told Jean Harlow in Hollywood.
Whether the former Governor of Rhode Island picked this up by
shortwave or permanent wave, he didn't say.
Mr. Hard, introducing Commissioner Walker, small in
stature, rather pale and who appears to be regarded as the deep
stuff man and the unknown quantity of the new crowd, saidi
"As you well understand, there are no politics in
connection with the Communications Commission, so since Mr.
Walker is to be the head of a division - the telephone division -
I need hardly tell you that he is a Democrat., "
- 4 -
7/20/34
Just before Judge Sykes was introduced, Mr. Hard
remarked that having introduced the newer members of the Commis¬
sion, he would now present the older ones, Chairman Sykes and
Colonel Brown. Whereupon former Commissioner Judge Robinson
stopped the show by remarking in a stage whisper, "I've heard them",
and then proceeded to walk out.
Commissioner Thad Brown was described by Hard as "a
regular and irregular Ohio Republican, a Theodore Roosevelt 'Bull
Mooser' , originally appointed by Herbert Hoover and reappointed to
serve on Frank Roosevelt's Democratic Commission."
"Teddy Roosevelt is my political idol", Colonel Brown
replied. "He is the only one I ever had and if he were living
today, he would still be my idol. "
Paul Spearman, new General Counsel, like Judge Sykes,
a native of Mississippi, brought forth the last shaft of the
toastmaster who said:
"Two on the Commission are from Mississippi, two are
from Texas, and one is from Oklahoma - anything west or north¬
west of a line drawn from Oklahoma to Ohio in communications
doesn't seem to count in the New Deal."
The only one closely connected with the new regime
not called upon to make a speech was Herbert Pettey, Secretary
of the Communications Commission. Pettey, whose principal job
seems to be dispensing political patronage for Farley, and who
was described by one correspondent as a "facile denier",
evidently isn't expected to make speeches.
X X X X X X X
OHIO CORPORATION GETS PICKUP STATION PERMIT
A license for a construction permit for broadcast pick'
up station WNER, at Russells Point, Ohio, on a frequency of
2060 kilocycles with 100 watts power has been granted to E. S.
Howlett, of the Associated Radiocasting Corporation.
XXXXXXXXX
5
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7/20/34
RADIO WHOLESALE TRADE SUBMITS CODE BUDGET
The Divisional Code Authority for the Radio Wholesaling
Trade, a division of the Wholesaling or Distributing Trade, has
made application uo the Administrator for approval of its budget
for 1934, and of the basis of contribution by members of the
trade, to the expenses of administering the Code for the period
from May 1, 1934, to April 30, 1935.
The total amount of the budget for the period is
$79,994.
The Code Authority has likewise submitted an applica¬
tion for the termination of the exemption conferred whereby
members of its trade whose principal line of business is embraced
in a trade or industry subject to a Code other than the Code for
the trade were exempted from obligation to contribute to the
expense of Code administration for the trade.
XXXXXXXX
WOULD PERMIT MASSACHUSETTS STATION TO MOVE
It has been recommended to the Federal Communications
Commission by Examiner Ralph L. Walker that Albert S. Moffat
be authorized to move Station WLEY from its present location
at Lexington, Mass. , to Lowell, Mass. , without change of operat¬
ing assignment.
Examiner ’Walker's conclusion in the case follows:
"Lexington, Massachusetts, the present location of
Station WLEY, now receives consistently satisfactory service
from several stations located elsewhere, while Lowell, Mass.,
and vicinity, does not receive consistently satisfactory service
from any existing station. It appears, therefore, that there is
a greater need for the services of WLEY in Lowell than in
Lexington. From a commercial viewpoint, Lowell affords greater
opportunity for the successful operation of Station WLEY. The
applicant is qualified in all respects to construct and operate
the station at the new location and to render the service needed
in that area.
"While under average conditions it would be expected
that the operation of WLEY at Lowell would result in objection¬
able interference with other stations, it appears from the evi~.
dence that actual conditions of propagation are less than
average and that Station WLEY can be operated in the proposed
location without causing objectionable interference to existing
stations.
XXXXXXXX
- 6 -
7/20/34
TO SEEK COMPLETE INFORMATION ON THE TELEGRAPH BUSINESS
At its first meeting last Thursday morning, the
Telegraph Division of the Communications Commission composed of
Commissioners Irvin Stewart, Chairman, George Henry Payne and
Judge Eo 0. Sykes, canvassed the duties with which it is charged
under the Act with a view to determining the order in which it
will take up various matters assigned to it.
The Commissioners decided that under the Act, communica¬
tion companies are required to file with the Commission schedules
of charges and information relating to charges within a reason¬
able time to be designated by the Commission.
Paul Spearman, General Counsel, has been instructed to
study the question of the type of information which the companies
should file with the Commission in connection with the schedules
of charges.
The Division will seek complete information on the
telegraph businessin all its phases, for use as a basis upon which
to lay out its future course of action.
The following new shortwave applications were granted:
Aeronautical Radio, Inc. , Los Angeles, Cal. , construc¬
tion permit, frequencies 2930, 6615 kc. , 400 watts; Town of
Harrison, N. Y. , Harrison, N. Y. , construction permit 30100, 33 ICO
37100, 40100, 86000-40000, 401000 kc. , and above, 50 watts; Same,
Portable-Mobile, 4 applications, same except 9 watts power;
City of Atlantic City, N. J. , construction permit, frequencies
30100, 33100, 37100, 40100, 86000-400000, 401000 kc. and above,
50 watts; Same - Portable-Mobile, 2 applications, same except
4.5 watts power; Durw^ard J. Tucker, Dallas, Texas, construction
permit 33100, 35600, 37600, 41000 kc. , 40 watts.
Also, Borough of Kenilworth, Police Dept. , Mobil e ,
construction permit 30100, 33100, 37100, 40100 kc. , power .5
watts; Westinghouse Electric & Manufacturing Co. , Portable-Mobile,
license to use transmitter now in operation under W10XAV, 62000
kc. , 500 w. ; Same - Portable-Mobile, license to use transmitter,
now in operation under W10XAT, 62000 kc. , 500 watts; Bell Tele¬
phone Laboratories, Inc. , Portable-Mobile, principally in State
of Newr Jersey, license 51400, 75000 kc. , 1 KW; City of Fairmont,
W. Va. , construction permit 2490 kc. , 30 watts; City of Pomona,
Calif. , construction permit 1712 kc. , 50 watts;
XXXXXXXX
7
-I
NEW COMMISSION ACTS UPON MIDDLE WESTERN APPLICATIONS
Transacting its first regular business, the Communica¬
tions Commission disposed of the applications of several Middle
Western stations. The application of TOBY, Green Bay, Wis. , 100
watt station to change operating assignment to 1360 kilocycles
and increase power to 1,000 watts, unlimited time, was denied.
Also the application of Station WBOW, Terre Haute, Ind. , asking
for 1000 watts daytime and 500 watts nightime was denied. These
stations asked for the facilities of Station WOES, Oak Leaves,
Chicago, together with those formerly used by Station WJKS
(now WIND, of Gary), as did WSBT, South Bend, Ind., which also
asked for a renewal of license. The South Bend applications
were granted with modifications.
Station WFBM, of Indianapolis, which heretofore had
been operating on specified hours, was granted unlimited time.
The application of Station WGES, Chicago, to continue operation
upon its present assignment, three- sevenths time, was granted.
The applications of John L. Hopkins, to construct a new station
at Hammond, Ind,, and WSBC, Chicago, for authority to move their
station to Hannond, were dismissed.
Grounds for the Commission's decisions was set forth as
follows :
That TOBY, Inc. , provides a meritorious local broadcast
service in the operation of Station WHBY, Green Bay, Wis., but
that this applicant has not made as effective use from a techni¬
cal standpoint of the present frequency and power assignment of
TOBY as might be made; that the proposed change in the operating
assignment of Station WHBY would cause increased and objection¬
able interference in the reception of other broadcast stations,
particularly Station WFBL, Syracuse, N. Y.
That no such need for the additional facilities appliec"
for has been shown as would warrant the deletion of Station WGES.
That Banks of Wabash, Inc., (WBOW), Terre Haute, Ind.,
provides a good local type of broadcast service but that it does
not appear that this applicant has adequate financial ability to
make proper use of the additional facilities applied for and that
no such showing has been made in support of this application as
would warrant the deletion of Station WGES.
That the Oak Leaves Broadcasting Station, Inc. , (WGES) ,
Chicago, Ill., provides a broadcast service which serves the
interests of the public of its service area and that this appli¬
cant is able and qualified to continue the service of Station
WGES in an acceptable manner.
That the South Bend Tribune (WSBT) and the Indianapolis
Power & Light Co. (WFBM) render meritorious regional broadcast
service in the South Bend and Indianapolis areas, respectively,
- 8 -
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7/20/34
and that each of these applicants is well qualified to continue
the service of its station upon either the present or proposed
operating assignment in a proper and efficient manner; that the
operation of Station WSBT upon the frequency of 1360 kilocycles,
hours not assigned Station WOES, as proposed herein, would serve
to sub stanti ally increase the service area and materially improve
the service of the station to the convenience and interest of
the population of the second largest metropolitan area of the
State of Indiana.
That the granting of a license for the full time opera¬
tion of Station WRBM, Indianapolis, would enable the licensee
thereof to render a more complete service and to render a greater
public service generally than it has heretofore been able to
render on account of the limitation upon the station's hours of
operation; that the full time operation of Station WFBM would
serve the interests of residents of the largest community and
most populous area of the State of Indiana.
XXXXXXXXXX
BROADCASTING- DIVISION ORGANIZES
The Broadcasting Division of the Communications Commis¬
sion did little more than to organize at its first meeting last
Wednesday (July 18). It is composed of Hampson Gary, Chairman,
who is understood simply to be filling the position until
Representative Prall is appointed to the place when his Congres¬
sional term expires January 1st, Col. Thad Brown, Vice-Chairman,
and Judge E. 0. Sykes, No light was thrown on who was to be
selected as Director of Broadcasting.
"I believe Farley is still out of town", one man
remarked when the question was brought up.
With regard to announcing additional personnel of the
Commission itself, it was said that there would be no blanket or
sweeping changes but that the appointments would be announced as
decisions were reached from time to time.
Paul Spearman, General Counsel, said the names of none
of his assistants had as yet been decided upon.
There appears to be some question as to whether or not
Dr. C. B. Jolliffe will be reappointed as Chief Engineer of the
Commission, His friends confidently predict that he will pull
through but the Commissioners in whose hands his fate rests are
silent with regard to the matter. There seems to be a feeling
that Dr. Jolliffe, because of his outstanding technical qualifi¬
cations, will be taken care of, but exactly how, no one appears
to be certain.
XXXXXXXX
9
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7/20/34
COMMISSION GIRDS ITSELF FOR TELEPHONE INVESTIGATION
The Telephone Division, composed of Commissioners
Walker, Chairman, Case and Sykes, held its first meeting today
(Friday) and took the following action:
Order No. 1
Pursuant to section 203(a) of the Communications Act of 1934
(approved June 19, 1934), IT IS ORDERED that every telephone car¬
rier subject to this Act, shall, on or before September 1, 1934,
file with the Commission, schedules showing:
(a) all charges for itself and its connecting carriers for
interstate and foreign telephone communication
(1) between different points on its own system, or
(2) between points on its own system and points on
the system of its connecting carriers, or
(3) between points on its own system and points on the
system of any other carrier subject to this Act,
when a through route has been established, whether
such charges are joint or separate.
and showing the
(b) classifications
(c) practices, and
(a) regulations affecting such charges.
Order No. 2
Pursuant to section 211(a) of the Communications Act of 1934
(approved June 19, 1934), IT IS ORDERED that every telephone car¬
rier subject to this Act shall, on or before September 1, 1934,
file with the Commission verified copies in duplicate of
1. contracts
2. agreements, or
3. arrangements
with other carriers, or with common carriers not subject to the
provisions of this Act, in relation to any traffic affected by the
provisions of this Act, to which it may be a party.
Order No. 3
Pursuant to Section 215 of the Communications Act of 1934,
(approved June 19, 1934), IT IS ORDERED that every telephone car¬
rier subject to this Act, shall on or before Septemberl, 1934,
file with the Commission a verified statement in duplicate showing
(l) the names of all persons or corporations in which such
carrier may own stock or in which such carrier has any
interest whatsoever because of common or interlocking
directorates, officers, or otherwise;
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(2) names and addresses of all officers and directors of
said telephone carrier and of any person corporation in
which such carrier may have any interest whatsoever as
defined in paragraph (1) of this order;
(3) the outstanding capital stock of all other corporations
in which such carrier may he interested through stock
ownership, common officers or interlocking directorates,
or otherwise, or over which such carrier may have or
exercise any control whatsoever so far as said corpora¬
tion or corporations ( in which such carrier may he
interested) may he engaged in the manufacture or furnish¬
ing of apparatus, equipment or supplies used or useful in
the operation, maintenance or improvement of telephone
systems or any experimental research or investigation
work looking to or contemplating the development or
improvement of equipment or apparatus used or useful
in the operation, maintenance or improvement of any
telephone system which may he subject to the provisions
of the Communications Act of 1934.
The Telephone Division granted the following applications:
KQH, RCA Communications, Inc., Kahuku, T. H. , modifica¬
tion of license to change frequency from 15985 to 14920 kc. ;
W2XAC . New York Telephone Co. , New York City, general experimental
license, frequencies 31600, 35600, 38600, 41000 kc. , 50 watts
power, for period ending June 1, 1935; W1XH, New England Tel. &
Tel. Co. , Boston, Mass. , construction permit to change transmitter
locally in Boston.
XXXXXXXX
STARBECK SUIT FILED
William D. L. Starheck filed suit for divorce in Reno,
according to an Associated Press Dispatch, against Mrs. Frances
Sayre Starheck, New York social registerite, charging separation
for more than five years.
The Starbecks married August 28, 1926, in New York City,
the papers said. Mrs. Starheck now makes her home in New Cana.an,
Conn.
The name William D, L. Starheck is not known in Washing¬
ton, but W. D. L. Starhuck, wa.s a former Radio Commissioner from
New York, who failed of reappointment.
XXXXXXXX
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: : BUSINESS LETTER NOTES: :
To the line of Arcturus tubes have been added the
special Majestic spray-shield types. These tubes come equipped
with a glove-fitting metal shield., soldered in place with proper
ground connection, and are identical in characteristics and
interchangeable with the spray- shield tubes.
Canadian Marconi Company (Controlled by Canmar Invest¬
ment Co., Ltd.) - For 1933: Net loss $173,524, against $188,086
loss last year.
An application of Station WJEJ, of Hagerstown, Md. to
increase its daytime power to 250 watts and to give the station
unlimited hours of operation with a nightime power of 50 watts
has been turned down.
The resignation of Eugene V. R. Thayer as a Director
of the American Telephone and Telegraph Co. , an office he has
held since 1910, was accepted at the regular meeting of the Board
in New York on Wednesday. Mr. Thayer, who recently became a
partner in Herrick, Berg & Co., resigned because of the company’s
policy not to include members of Stock Exchange firms on its
Board.
James H. Hanley, Federal Radio Commissioner, who it
had been expected would be appointed to the Federal Communica¬
tions Commission, has decided to remain in Washington. He will
practice law with the firm of Mason, Spalding and McAtee and will
specialize in radio, telephone and telegraph.
Apparently an effort will be made to revive the National
Radio Editors' Association at the Cincinnati meeting of the
National Broadcasters' Association September 17. E. L. Bragdon,
Radio Editor of the New York Sun is President, and Darrell V.
Martin, of Pittsburgh, is Secretary.
X X X X X X X
12 -
• •> • :
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
Broadcast Advertising Gains Substantially. . . , . , . . . 2
Capt. Sparks Leads Fight For Radio Manufacturers’ Code . 5
World Has 42,540,239 Radio Sets; 18,500,000 In U. S . 7
Commission Personnel Changes May Co Over Until August. . <>8
Broadcasting Division Acts On Routine Matters Only . .8
Ground Broken For New WOR 50 KW Plant. . . . . . . . . 9
Urges Synchronized Broadcasting. . . . . 9
Big Roundup For Ranch House Studios Dedication. . . . . . . . . . . . 10
Provide Printing System For Police Radio . . . 11
May Ask Code Authority To Stop Song Plugging Graft . 12
No. 743
\
7/24/34
BROADCAST ADVERTISING GAINS SUBSTANTIALLY
Gross sales of time over broadcasting stations and net¬
works during May just reported on by the National Association
of Broadcasters, amounted to $6,922,395, a gain of 3.8$ over
the April level and closely approximating the March high point.
Seasonal trends were in part offset by a cyclical upswing in
various parts .of the industry. National network declines were
less than the usual amount to be expected at this time of the
year. Individual stations revenues increased 9.7$ partly due
to seasonal and partly to cyclical reasons. Local station
advertising rose 21.3$„
All sections of the country experienced gains in
volume of non-network business, the heaviest increases occurring
in the East and Middle West. Stations in the 5,000 watt and over¬
class experienced an 11.7$ increase in revenues, all other sta¬
tions gaining except those in the 100 wTatt class. Electrical
transcription volume dropped 15.9$ due to national spot declines,
while live talent volume rose 25.3$, marked gains occurring on
both the national spot and local fields. This trend seems to
indicate that the truly national users of spot broadcasting, who
most consistently employ electrical transcriptions, are beginning
to withdraw for the summer season.
Marked gains were experienced in a number of fields of
sponsorship. Heaviest gains included a 23.1$ rise in beverage
advertising, an 18.8$ increase in department and general store
advertising, and marked rises in the automotive, accessory, soap
and household supply and amusement fields. The automotive rise
was due to a 60.7$ in national spot busines^in this field. Amuse¬
ment advertising, almost exclusively local rose 66.4$ as compared
with April. The May advertising follows:
National networks $3,728,481.00
Regional networks 44,559.00
Individual stations 3,149,090.00
Total $6, 922 , 395. 00
Season tendencies are in evidence, though they are
partly offset by a general seasonal upswing. The national net¬
work decline is considerably less than normal for May. On the
other hand the 9.7$ increase in individual station non-network
revenue is probably considerably more than normal, station revenu
seemingly tending to rise during May due to seasonal reasons. Tie
individual station rise has been due to a 21.3$ increase in local
radio advertising sponsorship as compared with April. Regional
network volume decrease approximately 28$ due mainly to seasonal
forces. National network volume during May is especially
encouraging being 2.6$ ahead of May 1932, and 64.0$ higher than
May, 1933.
X X X X X X X
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CAPT. SPARKS LEADS FIGHT FOR RADIO MANUFACTURERS’ CODE
With the same assurance with which he commands his
famous company of Zouaves, Capt. William Sparks, of Jackson,
Mich. , led a spirited fight for a separate Code for the Radio
Manufacturers at the public hearing in Washington yesterday
(Monday., July 23). Captain Sparks, dressed in a white linen
suit, the only person in the room who kept his coat on during
one of the Capital’s hottest days, sat calmly in the thick of
the fray, listening intently and seldom taking his eyes from
his opponents.
At present the radio manufacturers are operating under
the Electrical Code, the same as that governing the National
Electrical Manufacturers' Association. In the effort to with¬
draw from the Electrical Code, Captain Sparks, as Chairman of
the RMA Code Committee, met with opposition from representatives
of the Electrical Manufacturers' Association so strong at the
hearing that at times the exchanges became highly acrimonious.
Bond Geddes, Executive Vice-President of the RMA, and
John W. Van Allen, General Counsel of the Association, likewise
participated in the fireworks. A flareup between Mr. Van Allen
and Frances E. Neagle, counsel for NEMA, caused by Judge Neagle
turning on the former with, "Will counsel please quite interrupt¬
ing me?" had to be calmed down by Deputy Administrator Cowling.
Among those in attendance representing the radio
industry were A. S. Wells, Chicago, of the Wells-Gardner Company*,
Arthur Moss, New York, Electrad Company; Leslie F. Muter, Presi
dent of the RMA; Arthur T. Murray, Springfield, Mass., United
American Bosch Company; H. E. Ellig, Cincinnati, Crosley Radio
Corporation; H. H. Eby, Philadelphia, Eby Company; George B,
Deming, Philadelphia, Philco; and Fred D. Williams, Indianapolis,
past President RMA.
A number of telegrams addressed to Col. J. G. Cowling,
Deputy Administrator, who presided at the hearing, were received
from concerns favoring a separate Code for the radio industry.
Among these were Atwater Kent, American Electric Metal Corpora¬
tion, Hammerlin Mfg. Co. , Pilot Radio Corporation, Ferguson Radio
Corporation, Fairbanks Morse Home Appliance Division, R. Kt
Laboratories, Stewart-Warner, and the Continental Carbon Co.
The meeting was recessed subject to the call of the
Administrator at about five o'clock in the afternoon, after hav¬
ing continued all day. No one would venture a guess as to when
the NRA officials might reach a decision but the general
opinion seemed to be that it would be at least two weeks and
maybe considerably longer.
One got the idea, listening to the testimony, that the
Electrical manufacturers were trying to use the Code Administr¬
ation as a lever to increase their membership* At any rate,
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there were echoes of old differences which the two associations
seemed to have had. Captain Sparks was heard to remark, "This
is really a divorce trial. " The analogy was completed by Mr.
Geddes, who said, "RMA wants a divorce from NEMA and they will
not give it to us. "
Captain Sparks said that RMA membership numbers 110
companies and there are approximately 100 or more (mostly small)
non-member concerns. By volume of sales the membership of the
Radio Manufacturers’ Association represents at least eighty to
eighty-five per cent or more of domestic manufacturers of various
radio and television products. Annual sales volume (retail value)
of the industry's products in 1933 were over $200,000,000. Be¬
tween 40,000 and 50,000 persons are now employed in the industry.
The Jackson radio manufacturer took issue with NEMA
by declaring that several years ago the organization voluntarily
and entirely withdrew from the radio industry and has carried
on no radio activities or services to members until it secured
authority under the Code.
"The Radio Division of the NEMA was formally abolished
about four or five years ago after negotiations between committees
of NEMA and RMA", Captain Sparks continued. "Its original Radio
Division never had more than twenty-five or thirty members as
against a peak of 340 members in the RMA during the prosperous
era of a few years ago. The only service ever instituted and not
completed by the Radio Division of NEMA was partial work on radio
standards, an unsuccessful attempt to secure industry statistics
and an unsuccessful attempt to hold radio trade show exhibitions.
The existence of the Radio Division was such a point of conflict
between NEMA and RIM that in the interest of harmony between the
electrical and radio industries and after negotiations of the
joint committees, the NEMA. Board of Governors abolished the NEMA.
Radio Division and entirely withdrew NEMA. from all interests or
activities in the radio industry, since left entirely to the
jurisdiction and service of the RIM. "
"We cannot now be said to be a self-governing industry
because the Code Authority of the Electrical Manufacturing
industry io the National Electrical Manufacturers' Association
upon wdiose board the radio industry has no representatives nor
do we have any voice in our own destination, nor vote in connec¬
tion with any Code matters or its administration, the final author¬
ity resting with an Association with which we have no problems
in common, nor would it be possible for the radio industry when
combined with such large and diverse products as represented in
the National Electrical Manufacturers' Association, to be any
more than a small minority with no final authority in the deter¬
mination of its o wn self-government. We would be but one of
many (approximately 160) sections and groups."
Captain Sparks said that of 460 Codes, less than 30
were under 40 hours, yet the radio industry has to compete with
this condition.
4
7/24/34
Mr. Cowling had read into the record a letter from former
Deputy Administrator Allen in which he flatly denied ever having
threatened the industry with an 18 or 21 hour week or that he
ever used any "undue1' influence to persuade them to place them¬
selves under the Electrical Code, as Captain Sparks charged.
"The Radio Manufacturing Industry", said W. J. Donald,
Executive Secretary of the Electrical Code, "and the definition
proposed by the Association in a code which they propose to sub¬
mit, providing they secure exemption from the Electrical Code,
would make their Code a horizontal one, which would cut across
the electrical manufacturing industry and also the furniture
manufacturing industry in particular and a number of other codes
such as metal stamping, screws, molded products, etc."
Mr. Donald said a substantial number of radio manu¬
facturers would be adversely affected having to operate under
two codes. He said the Radio Manufacturers' Association devoted
itself almost entirely to trade shows and manufacturers exhibits.
"The RMA is not an industry", Mr. Donald declared,
"but an aggregation of employers trying to take jurisdiction
over products of the electrical and furniture industries. It
takes more than a group of employers to constitute an industry.
Without the cooperation of the electrical industry, the so-called
radio industry could not exist. "
Mr. Donald said the present Electrical Code was less
expensive for the radio manufacturers than a separate Code would
be. He criticized the "Buy RMA" campaign.
Judge Neagle, for NEMA, opened by attacking the annual
sales volume of the industry, set at $200,000,000 by the members
of the Association. That, he said, was the rets.il volume and
computed the sa.les volume of the manufacturers as about
$61,000,000.
He charged more than once that the statements in the
proponent brief were misleading and said once, "RMA should be
ashamed of itself for making such statements. 11
Judge Neagle submitted that 60 percent of everything
in a radio set is electrical.
"All the RMA is, is an assembler of products", Judge
Neagle went on. "Of the 30 members of the RMA Board, 23 are small
or medium sized manufacturers. The difficulty is not with the
Electrical Code but with RMA's desire to get out from under.
"RMA is not in any sense representative of the parts
going to make up a radio set. NEMA, on the other hand, is
representative of the parts which go to make up a set.
To the latter Judge Van Allen, for RMA, shot back:
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7/24/34
"I assume the NRA Board hearing this case is not so
s tup .id as to know what Atwater Kent makes, what Crosley makes,
and what RCA Victor makesj "
"If RMA became a subdivision of NEMA, what autonomy
could you give it", Deputy Administrator Cowling inquired.
"There is no method to provide for membership by
associations", Judge K^agle replied. "A section of NEMA is
j-argely autonomous and largely operates as a trade association^
David A. Trilling, of Philadelphia, President of the
Radio Wholesalers, urged that the exemption be granted RMA for
the sake of the whole industry.
Joseph Ge Mitton and Samuel Nesin, speaking ror organized
labor in the industry, also urged approval of the exemption
request, basing their pleas on the wage provisions of the Electri¬
cal Code, and making it evident that they hoped for better minimum
wage provisions from a code to be submitted by the radio manu¬
facturers if their exemption request is granted.
W. Cu Holden, speaking for the Metal Trades Division
of the American Federation of Labor, urged a separate code on
the grounds that such an all-embracing code as that for the
electrical industry did not provide for adequate protection for
labor in any subdivisions -which might be formed.
Mr. Geddes, in response to questions by the Deputy
Administrator, estimated that the difference in cost of code
administration to his industry as a separate entity or as part of
the electrical industry was the difference between $45,000 and
from $100,000 and $150,000.
A. T. Murray, administrative officer for the radio group,
told Mr, Cowling that he had been one of those at first in favor
of placing the industry under the Electrical Code, but that the
past nine months have shown him his mistake. Speaking of the
cost of code administration, he stated emphatically that there
would have to be rank extravagance if the annual cost of administer¬
ing a code for the radio manufacturing industry was to exceed
$5,000.
XXXXXXXX
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7/24/34
WORLD HAS 42,540,239 RADIO SETS; 18,500,000 IN U. S.
Tiie United States far outdistances any other world pol¬
itical subdivision in the number of radio broadcasting stations
and radio receiving sets being credited with 585 of the world’s
1,497 medium wave stations and 18,500,000 of the estimated
42,540,239 radio receiving sets throughout the world, according
to a study by Lawrence D„ Batson, Electrical Equipment Division,
Department of Commerce.
The regional distribution of radio receiving sets
throughout the world shows North America f irst-ranking with a
total of 19,769,045. Europe is second- ranking with 18,594,605
sets and is followed in order by Asia, 1,982,712; South America,
909,867; Oceania, 639,338; Europe-Asia . (Russia and Turkey)
605,500; and Africa, 93,072.
The United Kingdom with 6,124,000 radio receiving sets
ranks second to the United States and is followed by G-ermany
with 5,424,755; Japan, 1,739,160; France, 1,554,295; Canada,
1,100,000; Spain, 700,000; Sweden, 666,368; Czechoslovakia,
620,000; Argentina, 600,000; Russia, 600,000; Denmark, 551,681;
Austria, 507,459; and Australia, 500,341.
Medium virave broadcasting stations are shown by the study
to number 805 in North America; 215 in Europe, 199 in South
Africa; 115 in Asia; 94 in Oceania; 52 in Europe-Asia; and 17 in
Africa.
Canada is showing ranking next to the United States in
the number of stations operated with 75 being credited to the
province. China is shown with 72 stations and is followed in
order by Mexico, 64; Australia, 61; Chile, 57; Russia, 52; Cuba,
49; Brazil, 42; Argentina, 40; Uruguay, 35; New Zealand, 32;
France, 29; Sweden, 28; and Germany, 26.
The study records the existence of 140 short wave broad¬
casting stations throughout the world.
Figures for radio receiving sets used in the study are
trade estimates and are believed to represent a possible minimum.
Mr. Batson stated that it is believed impossible to arrive at a
strictly accurate figure for receiving sets because of the use of
many unlicensed, and consequently unrecorded, receiving sets in
those countries where a listeners' license is required.
Exports of radio equipment from the United States during
1933 were valued at $16,125,729, Commerce Department statistics
show.
XXXXXXXX
- 7 - -
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*-i to
7/24/34
COMMISSION PERSONNEL CHANGES MAY GO OVER UNTIL AUGUST
Due to the fact that Commissioner Paul Walker has gone
to his home in Oklahoma and probably because of the absence from
the city of Postmaster General Farley , who generally approves
patronage positions, it is believed that further major changes
in personnel at the Federal Communications Commission will not
be made before August 15th.
This will no doubt include the appointment of aides by
Paul Spearman, General Counsel, Herbert L. Pettey, Secretary,
and the position of Director of the Broadcasting Division. Also
the question as to whether or not Dr. C. B, Jolliffe will be
appointed to Chief Engineer of the Commission still remains in
status quo. Regardless of the political angle, it is not
believed any important appointments will be acted upon during
the absence of Commissioner Walker.
XXXXXXXX
BROADCASTING DIVISION ACTS ON ROUTINE MATTERS ONLY
No matters of policy were taken up by the Broadcasting
Division of the Federal Communications Commission at its meeting
Tuesday. The Division confined itself entirely to the considera¬
tion of routine applications and took the following action:
Applications Granted
WLBL , State of Wisconsin, Dept, of Agr. & Markets,
Stevens Point, Wis. , modification of license to change hours of
operation from 6 A.M. to LS to : 8 A. M. to L3; KGNF, Great Plains
Broadcasting Co., N. Platte, Neb., authority to install automatic
frequency control equipment; KSD, The Pulitzer Publishing Co.,
St. Louis, Mo. , authority to determine operating power by direct
measurement of antenna; Westinghouse Electric & Manufacturing Coc ,
(New), Pittsburgh, Pa., C. P. and license (Spec, experimental),
60000 kc. , 150 watts.
Action On Examiners* Reports
New, E. L. Landsberg & K. V. Martin, Las Vegas, Nevada,
denied C.P„ for new station to operate on 1420 kc. , 100 watts,
unlimited time, sustaining Examiner R. L. Walker; KGIX, Jt M.
Heaton, Las Vegas, Nev. , granted renewal of license to operate on
1420 kc. , 100 watts, specified hours, Examiner Walker sustained;
New, Frank Wilburn, Prescott, Ariz. , denied C.P. for new station
to operate on 1500 kc. , 100 watts, unlimited time (facilities of
XPJM) , sustaining Examiner Walker; KPJM, d/b as Scott & Sturm,
Prescott, Ariz. , renewal of license granted, 1500 kc. , 100 watts,
unlimited time, Examiner Walker sustained.
XXXXXXXXX
~ 8 -
7/24/34
GROUND BROKEN FOR NEW WOR 50 KW PLANT
Ground was broken for tlie new WOR 50,000-watt trans¬
mitter at Carteret, Nc J, , yesterday, July 23. Employing a crew
of sixty mechanics and technicians in its construction under dir¬
ection of J. R0 Poppele, Chief Engineer of WOR. the plant will
be ready to go on t,he air toward the end of November,, Engineer¬
ing surveys concluded after months of research indicate that the
$300,000 station will have three times greater coverage of large
population areas.
The site adjacent to the Rayway River, is twelve miles
from Newark, and eighteen miles from Columbus Circle, N. Y,
The building, a one-story structure 60 foot by 66 feet,
will house in addition the 5,000-watt set now in use, for
auxiliary purposes, airway radio-beacons and a short-wave trans¬
mitter.
Two radio towers, each 385 feet high, form what is
known as a "three array" antenna system, a new development having
its first application in other than short-wave transmission at
this time. One tower is located in Carteret and the other in
Woodbridge. They will be equipped with special lights approved
by the Department of Commerce to guide aviators. On the roof of
the building is to be an electric sign, visible for miles, also
to guide fliers, bearing the letters, "WOR, Carteret, N. J. " ,
and an arrow pointing due north.
The entire nlant, including aerial and ground installa¬
tions, will occupy thirty-four acres. The network of ground wi.:' s
alson will cover ten acres, part of which will be laid in the
Rahway River.
XXXXXXXX
URGES SYNCHRONIZED BROADCASTING
Expressing the hope that the new Communications Commis¬
sion will be more receptive to new ideas and technical develop¬
ments than was the old FRC, 0. H. Caldwell, former Radio
Commissioner advocates the synchronization of broadcasting sta¬
tions.
"Today equipment is all ready, complete experiments
have been made, and several successful individual installations
are in use", Mr. Caldwell said. "Synchronizing is now a demon¬
strated fact.
"Synchronizing, indeed, seems the only ultimate avenr '■
for solution of a whole group of problems that are facing broad*
casting. Here are some of the needs for which synchronizing
9
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7/24/34
supplies prompt answers:
"Wider channels (15 to 20 kc. ) for high-fidelity broad¬
casting; Efficient use of broadcast channels; Channels to meet
demands of Canada, Mexico and Cuba; Common- frequency broadcasting
by chain stations with high fidelity; Positions in the spectrum
for stations requiring good local coverage; Higher wattage on
channels, but distributed among synchronized transmitters,,
"In fact, all the present ‘headaches' of broadcasting
seem, to find their solution in this panacea of synchronizing,
intelligently applied. “
XXXXXXXX
BIG- ROUNDUP FOR RANCH HOUSE STUDIOS DEDICATION
Styled the "First Roundup", 4,000 persons helped
dedicate the new Ranch House studios of Station KRGV, at Weslaco,
Texas. The station crew was in appropriate regalia, with a
"chuck wagon" and all of the things to make a true Western
setting. Needless to add, this included six shooters, chaps,
spurs, 2-gallon hats, lassos, and everything necessary for
riding herd.
"Great interest has been displayed in the station
since the move, and a nice increase in business lias already
been evidenced, to say nothing of the clearly improved financial
condition this move placed us in", M. S. Niles, President of
KRGV writes, sounding an optimistic note. "Barring any more
catastrophies, such as floods and hurricanes, and with the
gradually improving economic conditions, we feel that KRGV
will again come into its own now as it is in smooth water.
"At the present time, the cotton crop of the Lower
Rio Grande Valley looks the most promising of any we have had
in eight years, and if we can escape any heavy rains from the
next four to six weeks, this crop will tide us over nicely
through the Summer. "
xxxxxxxxxx
The studio building of STAR, Norfolk, Va. , was all
ready for NBC even before the station became associated with the
networks. Door panels and elevator boys' uniforms alike were
adorned with NBC monograms. Advance information of the coming
network affiliation was not the cause, however,, It was due to
the fact that the new studios of WTAR are located in the
National Bank of Commerce building in Norfolk.
XXXXXXXX
- 10
7/24/34
PROVIDE PRINTING SYSTEM FOR POLICE RADIO
At a meeting of the Radio Club of America in New
York, the first public disclosure of a simple automatic
printer for police radio service was made by W0 H. G. Finch*
Mr. Finch's work has developed out of his extended
research into printing telegraph systems for the daily news-
papers which have in successful operation a number of radio
circuits on a basis providing competition with existing wire
circuits, transmitting daily thousands of words of press matter*
The device of particular interest to police, or
other mobile services, because it provides a permanent record,
is a printer weighing 8 pounds, operating from the 6- volt
automobile car battery, printing 35-40 words per minute on a
tape. Thus the officer in the car need not worry about local
audible interference; and his memory need not be taxed or
handicapped by other local circumstances. This device, when
properly actuated by the distant transmitter, will print out the
message from headquarters and retain it as permanent proof
that it was actually received in the care
This printed tape record, proceeding behind a simple
lens or other projection system, is magnified so that it can be
easily read by those in the police car.
Signals from the transmitter, which need be no more
powerful thaft present voice-modulated apparatus, may be coded
automatically, changed from day to day if desirable, and
decoded automatically at the receiver in the mobile installa¬
tion. Others listening in could not unravel any of the mes¬
sages from headquarters, insuring secrecy with advantages to
the police system that are obvious.
The applications, as an automatic printer, to the
dissemination of weather reports to aircraft in flight, or to
infer- vessel communication in a fleet, such as the fishing
fleet off Grand Banks, or among Naval vessels or Army networks -
in other words to all mobile or stationary points to which
teletype might be employed are but natural extensions of the
police radio usage.
XXXXXXXXX
11 -
7/24/34
MAY ASK CODE AUTHORITY TO STOP SOxNG PLUGGING GRAFT
The Music Publishers’ Protective Association has
carried its campaign against song plugging bribery to the band
leaders themselves, Variety asserts.
"John G« Paine, Chairman of the MPPA Board, has notifie
some 15 bandmen that unless they cease the practice of insisting
on gratuities for playing a tune over the air, complaints against
them will be filed with the Radio Code Authority and stations
through which they clear their programs", the theatrical magazine
goes on.
"In his letter to these leaders, Paine declared that
unless he was immediately assured, in writing, that they were
prepared to cooperate with the publishers toward the elimination
of bribery practices, he would take whatever enforcement steps
he deemed necessary under clause 4a of the trade practice pro¬
visions of the Radio Code. This clause stipulates that 'no
broadcaster or network shall accept or knowingly permit any
performer, singer, musician, or orchestra leader to accept any
money, gift, bonus, refund, rebate, royalty service, favor
or any other thing of value from any music publishers, composer,
author, copyright owner, or the agents or assigness of any such
persons, for performing, or having performed, any musical or
other composition for any broadcaster or network when purpose
is to induce such persons to sing, play or perform, or to have
sung, played or performed such works.11’
Still aiming to curb song plugging, the Music Code to
be considered at the hearing July 26, would prohibit series of
hotly-argued trade practices over which wide disagreement
developed last year. Proposed agreement would bar publishers
from paying for plugging; purchasing of benefit tickets or
advertising for purpose of influencing performers to plug
songs; publishing special arrangements without written okay of
copyright owners; paying royalties to performers who are not
bona fide composers, arrangers or writers; publishing books,
pamphlets or sheets of songs or lyrics without special permis¬
sion of various copyright holders, and from abusing privilege
of sampling.
Two code authorities would be established to heal the
breach between major factions, each having five members. A
co-ordinating committee would be composed of two members from
standard and two from popular divisions with a fifth member
named by this group, forming a super-code authority.
X X X X X X X
12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
! . .
CONFIDENTIAL- Not for Publication
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INDEX TO ISSUE OF JULY 27, 1934.
Commission Orders Telegraph Companies To Submit Data.
Charges Music Publishers’ Code Entrenches Monopoly...
Radio Sales Put At 4,550,000 Sets .
Commissioners Appoint Secretaries .
Open Meeting To Dlsouss Code At Cincinnati . . •
Believed Ford Will Fight License Denial. . .
bhoadcastim co.
DEDAL DEPARTMENT
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General Hammond Radio Wholesaling Code Authority . . . .8
Gas Station Radios For Motorists' Weather Information . . . 8
Favors Newport Station If Providence Station Changed...., . 9
Business Letter Notes . 10
Telephone Division Marks Time Awaiting Data .
Televisions Without Lenses Visible Three Sides Promised,
11
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July 27, 1934.
COMMISSION ORDERS TELEGRAPH COMPANIES TO SUBMIT DATA
The first Federal move toward regulation of the
record wire industry was ordered Wednesday by the new Communi¬
cations Commission in instructions sent all telegraph companies,
radio as well as wire.
Following the lead of the commission's telephone unit,
the Telegraph division ordered telegraph companies by September
15 to submit copies of contracts with other carriers, and a cross
section of their corporate and stock connections.
Preliminary to the commission's study of merger possi¬
bilities in the telegraph field, involving Western Union, now
controlling 75 per cent of the telegraph business, and Postal
Telegraph, 24 per cent, the division asked full information of
the record wire financial set-up. The International Telephone
& Telegraph Co. was among those queried.
Commissioner Irvin Stewart, chairman of the telegraph
division of the commission called on the telegraph companies
operating by radio, landlines and cables to list the names of
all persons or corporations in wliich such carrier may own stock
or in which such carrier has any interest whatsoever because of
common or interlocking directorates, officers, or other wise;
the total capital stock of each such corporation and the amount
held by or on behalf of such carrier; and the names of such
common or interlocking directors or officers and the positions
held by them. Also the names and addresses of all officers and
directors of said telegraph carrier and of any person or corpora¬
tion in which such carrier may have any interest whatsoever;
together with a statement of the manner and extent of such interest.
The order likewise called for the outstanding capital
stock of all corporations in which such carrier may be interested
through stock ownership, common officers or interlocking director¬
ates, or otherwise, or over which such carrier may have or exercise
any control whatsoever so far as said corporation or corporations
(in which such carrier may be interested) may be engaged in the
manufacture or furnishing of apparatus, equipment or supplies
used or useful in the operation, maintenance, or imporvement of
telegraph systems or any experimental research or investigation
work looking to or contemplating the development or improvement
of equipment or appartus used or useful in the operation, main¬
tenance or improvement of any telegraph system which may be
subject to the provisions of the Communications Act of 1934,
together with a statement of the manner and extent of such
interest or control.
-2-
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Also the names and addresses of the 30 largest holders
of each class of stock of such carrier and the amount of stock
held by each; if such carrier is a subsidiary corporation, the
name and address of the controlling or parent corporation, and
if the controlling or parent corporation in turn is a subsidiary,
the name and address of each corporation to and including that
having final control.
And finally the names and addresses of all persons
or corporations under direct or indirect common control with
such carrier, and the name and address of each person or corp¬
oration possessing such direct or indirect common control.
The telegraph division granted the following new
radio telegraph applitations :
City of Jersey City, Dept, of Public Safety Portable-
Mobile ( 12 applications ) construction permit (Exp. Gen. Exp.)
frequencies 30100, 33100, 37100, 40100, 86000-400000, 401000 kc. ,
and above, power 4.5 watts; City of Wheaton, Wheaton, Ill,, C.P.
(Gen. Exp.) 40100 kc. , 50 watts; Same ~ Portable-Mobile (2 appls) .
same except 5 watts power; City of Springfield, Ohio, Police
Dept., C.P. frequencies 30100, 33100, 37100, 401000, 86000-400000,
401000 kc. and above, 50 watts; Same - Portable- Mobile (10 appls),
same except 9 watts; Radiophone Corp. of America Portable, C.P.
1614, 2398, 3492.5, 4797.5, 6425, 8655, 12862.5, 17310, 23100,
31600, 40600 kc., 100 watts.
XXXXXXXX
CHARGES MUSIC PUBLISHERS’ CODE ENTRENCHES MONOPOLY
Charging that the Music Publishers' Code was written
"to entrench the monopoly of the Music Publishers' Protective
Association and the American Society of Composers, Authors and
Publishers", Oswald F. Schuette, copyright advisor of the National
Association of Broadcasters, presented the objections of the
broadcasting industry to that code at the public NRA hearing
before Deputy John E. Williams yesterday (Thursday, July 26).
Mr. Schuette offered a series of amendments to the code.
One of these would take from the Board of Directors of the Music
Publishers Protective Association - which presented the code -
the right to name the code authority for the popular music publish¬
ing industry. Another would forbid copyright contracts designed
to hinder boradcasts of the works of independent composers and
would prevent the beneficiaries of such contracts from, partici¬
pating in the code authority or in its selection.
Another amendment provided that the immunity from the
operation of the anti-trust laws, granted by Section 5 of the
National Industrial Recovery Act, shall not be applicable to any
practices of the Music Publishers Protective Association or the
American Society of Composers, Authors and Publishers now under
investigation by the government.
-3-
Y/yY/34
The amendments which Mr. Schuette follow:
On page 4, Article VI, amend Section 1(b) by striking
out the provision that the code authority shall be elected by
the Board of Directors of the Music Publishers Protective Associa¬
tion and substitute therefor the names of five members of the
popular music publishing industry who shall be truly representa¬
tive of the membership of that industry and not more than two of
whom shall be members of the Music Publishers Protective Associa¬
tion. Also strike out the words at the end of this section
"within thirty days after the effective date of this code. " The
code authority should take charge at ohce.
Also on page 4, Article VI, amend Section 1(a) by striking
out the words" to be selected by the Board of Directors of the
Music Pub;ishers Association of the United States" and substitute
therefor the names of five members of the standard music publishing
industry who whall be truly Representative of the membership of
such industry and not more than two of whom shall be members of the
Music Publishers Association of the United States. Also strike out
the words "within thirty days after the effective date of this
code. "
Amend Section 2, of Article VI on page 4, by increasing
the number of administration members from one to three (necessary
to protect the public, competitors and consumers against this
monopoly power. ) Also strike out all of Section 3. There is no
need for any interim code authority - and if there were, this power
should not be entrusted to committees of the MPPA or the MPA.
On page 9, at the end of Section 4, of Article VIII, put
a semicolon and add the following language: "Nor shall any
member of the industry grant a license for the public performance
of copyrighted works, under terms, conditions, or agreements, the
effect of which is to deny to other copyright owners the equal
opportunity to obtain the public performance of their works through
the facilities of such talking machine company, radio broadcasting
or television station, electrical transcription company, motion
picture company, or place of public entertainment."
Also on page 9, at the end of Section 5, put a semicolon
and add the following language: "nor shall any license for public
performance of copyrighted music be so worded as to exact or collect
a royalty for the use of music not controlled by the licensor. "
Add a new section to Article VI on page 4, as follows:
"No members of the industry shall be eligible for election as a
member of either of the foregoing code authorities, or of . the
Music' Publishers Coordinating Committee hereinafter provided for
in Article VII or to participate in the election of a member,
stockholder, associate, or participant, deirectly or indirectly,
in any capacity, in any corporation, club, partnership or associa¬
tion composed of copyright owners and/or composers and/or pub¬
lishers of music, the purpose, effect or result of which is to
engage in any of the practices condemned in Article VIII."
-4-
7/22/34
On page 11, at the end of Article XI, add the follow¬
ing sentence: "The immunity from the operation of the anti¬
trust laws, granted by Section 5 of the National Industrial
Recovery Act, shall not be applicable to any practices of the
Music Publishers Protective Association or the American
Society of Composers, Authors and Publishers now under
investigation by any governmental agency, "
XXXXXXXX
RADIO SALES PUT AT 4,550,000 SETS
Interest in radios now has reached the highest pitch
in several years, and some retailers describe current demand as
measuring up to that when satisfactory sets were first so widely
distributed back in 1924, according to Dunn & Bradstreet, Inc.
11 Instead of the usual summer lull, the trend of sales
continues steadily upward, although at a slower rate than during
the first six months of the year. 11
"For wholesale and retail volume during that period
rose 50 to 75 per cent above the level reached during the com¬
parative months of 1933, and with some of the large distributors
the increase ran as high as 100 to 150 per cent for several of the
Nationally known sets."
"This substantial gain is not attributable to the stim¬
ulus of low prices, as these have held steady, but almost entirely
to the widening popularity of the radio, aided by the constant
improvement in the entertainment provided by broadcasting com¬
panies, the achievement of manufacturers in bringing the short¬
wave sets within the reach of the average buyer, and the possibil¬
ity of enjoying satisfactory programs throughout the entire 24
hours of the day, "
"Based on the advanced inquiries for new merchandise,
volume during the second six months of the current year will
run ahead of the comparative figures for 1933 by 25 to 40 per
ce^t, despite the smaller returns from the drought- stricken areas,
as retailers in all parts of the county are expectimg demand to
swing abruptly upward as soon as the new models will have been
displayed. "
"This will bring sales for 1934 to a conservatively
estimated total of 4,500,000 sets as compared with the record of
the peak year of 1929, when 4,438,000 sets were sold, with a
retail value of $592,068,000 less tubes. Sales or automobile
radio sets alone are expected to run to 750,000 units,"
XXXXXXXXX
*» 5-
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7/27/34
COMMISSIONERS APPOINT SECRETARIES
Secretaries were appointed by three Communications Com¬
missioners this week, Brown, Payne, and Case. Each secretary is
to receive a salary of $4,000. Colonel Brown’s secretary is
Joseph E. Keller, 27 years old, a lawyer of Dayton, Ohio. Mr.
Payne will have as secretary, A.braham Miller, formerly of the
Treasury Department, and Henry M. Barry, formerly secretary to
Senator Bingham will serve as Governor Case’s secretary.
Mr. Keller graduated at the University of Dayton Prep
School, in 1924, and secured an A.B. degree at the University of
Dayton, 1928 and LL.B. degree in 1930, from the same university.
He was admitted to practice of law in Ohio in 1930 and in Federal
Courts in 1933. Mr. Keller was a law instructor for four years
at University of Dayton Law School, and was associated in an
editorial capacity for eight years with Dayton Daily News, Dayton
Herald and Dayton Journal. He was acting judge of the Oakwood
Court, Oakwood, Dayton, Ohio, and served as Editor of the Univer¬
sity of Dayton News , two years, and Associate Editor, The Exponent
Magazine, University of Dayton, and acted as publicity director,
University of Dayton for four years.
Mr. Miller taught Economics, History and English in
private preparatory schools in New York City.
From 1908 to 1934, except during a period of about three
years, he held administrative positions in the Bureau of Internal
Revenue and in other bureaus of the Treasury Department. While in
the U. S. Government service, he trained and directed many men and
reorganized a number of divisions. He directed successfully
numerous important investigations for the Government. He has had
much investigative experience.
Mr. Barry was born in Vermont. He graduated from Vermont
Academy, Saxton's River, Vt. , and Brown University (A.B. 1894 and
A.M., 1895); engaged in newspaper work in Providence, R. I.,
chiefly on Providence Journal; Secretary to Mayor Henry Fletcher
of Providence, 1909-1912; Clerk of State Harbor Improvement Com¬
mission; Secretary to United States Senator LeBaron B. Colt of
Rhode Island, 1913-1925; Secretary to United States Senator Hiram
Bingham, Conn,, 1925-1933; clerk of various Senatorial standing
oommittees and certain special Congressional commissions, includ¬
ing Insural Reorganization, District of Columbia Airport, Air¬
craft in National Defense, etc.
X X X X X X X
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OPEN MEETING TO DISCUSS CODE AT CINCINNATI
What will virtually amount to adding an additional day
to the National Association of Broadcasters' convention at Cin¬
cinnati, September 16-19, will be an open meeting of the Code
Authority for the Radio Broadcasting Industry 9 , Thursday morning,
September 20th. As explained by James W. Baldwin, Executive
officer, it was decided to hold the meeting at the conclusion
of the NAB gathering so as to make it possible for a maximum
attendance at a ninimum inconvenience to industry members.
The meeting, which will be opened by the Chairman,
John Shepard, 3rd, will be conducted under the following rules.*
The meeting will be open to any member of the Radio
Broadcasting Industry who is complying with all of the provisions
contained in the Code of Fair Competition for the Radio Broad¬
casting Industry. This includes the payment of at least the
first three quarterly instalments of the assessments levied by
the Code Authority to defray the costs of administration.
Also, each member qualified to participate shall be
entitled to one vote. Proxies will not be allowed.
A member in good standing may, in writing, designate
a regular staff employee to represent him and his vote shall bind,
such member, and a member desiring to make a motion or to offer
a resolution shall be required to submit a copy of the same to
the Presiding Officer in order to gain recognition.
XXXXXXXX
BELIEVED FORD WILL FIGHT LICENSE DENIAL
Following the denial of the Telegraph Division of the
Federal Communications Commission of the applications of the Ford
Motor Co. for renewal of licenses of three special experimental
radio stations, W8XE and W8XC, at Dearborn, Mich, and W9XH, at
Lansing, Ill, , it is expected Mr. Ford will carry the case into
the courts.
The Telegraph Division followed recommendations of
Examiner Ralph L, Walker, who reported the Government departments
were faced with an acute shortage of frequencies in the ba.nd
between 200 kilocycles and those well over 400 kilocycles. The
three Ford stations are in the 389-kilocycle class.
Walker added: "Station W8XE during its period of trans¬
mission blankets the reception of communications on the frequency
used by vessels on the Great Lakes for distressed traffic. The
- 7 -
V /
importance of these communications cannot be overestimated. They
involve safety of life as well as property.
"The experimental work now being carried on through the
medium of Station W8XC to test the durability of equipment, may
be accomplished by using a dummy antenna and without actual trans¬
mission. Station W9XH, has not been in operation for a period of
months. When used, its activities were substantially the same as
those of Station W8XC. 11
XXXXXXXXXX
GENERAL HAMMOND RADIO WHOLESALING CODE AUTHORITY
Gen. Thomas S, Hammond, at present with the Whiting
Corporation, Harvey.. Ill., has been appointed Administration Member
of the Divisional Code Authority for the radio wholesaling trade.
General Hammon has been a member of the NRA Regional
Labor Board in Chicago, and was chief of the NRA Blue Eagle
Division from July until November, 1933. He is a former president
of the Illinois Manufacturing Association, commands the 66th
Infantry Brigade, 33rd Division, Illinois National Guard, and
was graduated from Michigan University where he was an All-American
football player.
The Radio Wholesaling trade has submitted an amendment
to its code that would make mandatory on members of the industry
contributions to the costs of administering the code.
X X X X X X X
GAS STATION RADIOS FOR MOTORISTS' WEATHER INFORMATION
Intermediate wave radio receivers at filling stations
and other points along highways to obtain weather information for
motorists were suggested by the Bureau of Air Commerce. Every
hour from the sixty-eight airways broadcast stations scattered
throughout the United States along the Federal Airways System
weather reports are sent out on the air to assist flyers, and
small receiving sets with a range of from 200 to 400 kilocycles
could make this information available to motorists.
This service, if organized, could be made available to
the transient motorist in the form of small bulletin boards to be
placed in conspicuous places in service stations, bus stations,
and local automobile clubs and associations on heavily traveled
highways where an attendant could post the weather broadcasts as
soon as they were sent out on the air. This would be of particular
importance in the more rugged and mountainous sections of the
country, where a fog may mean delay, a heavy rain a washout, and
a snow an impassable section of roadway.
XXXXXXXXX
8 „
■ \
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'
a
7/26/34
FAVORS NEWPORT STATION IF PROVIDENCE STATION CHANGED
Examiner George H. Hill has recommended to the Federal
Communications Commission that the application of S. George Webb,
for a construction permit for a 100 watt station, nightime, and
250 watts daytime, on 1200 kilocycles be granted if, and when,
Station WPRO, at Providence, R. I. is given the regular assign-
ment to operate on the 630 kilocycle frequency, and when Station
WORC is given the regular assignment to operate on the 1280 kilo¬
cycles frequency. Otherwise the application should be denied.
The conclusions of Examiner Hill were: The applicant,
S, George Webb, is legally qualified and has sufficient financial
backing to construct and operate the proposed station. There
is adequate local talent available to serve the needs of the
proposed station. The Newport area is now inadequately served by
existing radio stations. No objectionable interference would
result from the granting of the application, provided Station WPRO
is regularly assigned to the frequency 630 kilocycles and Station
WORC is regularly assigned to the 1280 kilocycle frequency, but
should Station WPRO operate on the frequency of 1210 kilocycles
serious interference would result.
It was set forth in the report that the applicant,
s, George Webb, is the public relations manager of the Newport
Electric Corporation, in charge of publicity work for that con¬
cern. In the event of the granting of the application, the
applicant proposes to form a corporation in order to finance and
operate the proposed station. The applicant would purchase stock
of the corporation to the amount of $5,000, and Ralph S, Hollis,
Henry Horgan and Glen A. Bissell would es.ch subscribe to a like
amount of this stock. In addition to this $20,000, the President
of the Newport Electric Corporation, William P. Sheffield, has
assured the applicant the sum of $20,000 would be procured and
made available for the construction and operation of the station
immediately upon the granting of the application.
Mr. Sheffield is an attorney-at-law and identified with
a number of business enterprises. The applicant testified that
while Mr. Sheffield was a man of large means, he could not give
a definite statement of his net worth, but he testified that Mr.
Sheffield was amply able to put up the $20,000, which he had
agreed to make available for the construction and operation of
the proposed station and that the Newport Electric Corporation
would not in any way be identified with the construction and
operation of the proposed station.
X X X X X X X X X X
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7/26/34
BUSINESS LETTER NOTES
George B. Storer, President of the American Broadcasting
System, has announced the appointment of Burt McMurtrie a3 Director
of Program Operations of the ABS network, effective August 5.
Mr. McMurtrie was formerly director of the Commercial
Program Department of the Columbia Broadcasting System.
William F. Melia has also joined the staff of the
American Broadcasting System-WMCA network. His activities will
include remote controls and special events. With WMCA since
1929, Mr. Melia transferred to another New York station earlier
this year. He will continue to announce only one program, "The
Radio Party", on WMCA locally.
A lease has been signed which will provide Station KDKA,
Pittsburgh with completely modern new studios and offices, which
will occupy the entire third floor of the Grant Building in that
city.
"The Westinghouse Electric and Manufacturing Company
and the National Broadcasting Company are cooperating to make the
new KDKA studios one of the finest broadcasting plants in America",
said Richard Patterson, Jr. of NBC. "The present plans call for
six studios, each of the largest of which will be adequate to
accommodate a huge symphony orchestra. Two other studios will be
large enough for small musical ensembles; another will be designed
primarily for speakers, and the sixth for electrical transcriptions"
Because the local Kuomintang considers that radio
broadcasting of songs and entertainment programs "has a tendency
to subvert the thoughts of the people", the Bureau of Education
has decided to organize a censorship committee in Shanghai.
The foreign-owned broadcasting stations situated in the
International Settlement and the French Concession will not come
under the new regulations,
XXXXXXXX
10
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TELEPHONE DIVISION MARKS TIME AWAITING DATA
Due to the absence from Washington of Chairman Paul
Walker, who has returned to Oklahoma to pack up and to bring his
family to Washington, there was no meeting Thursday of the
Telephone Division of the Federal Communications Commission.
Commissioner Case, Vice-Chairman of the Commission said
that nothing of a pressing nature pended before the Telephone
Division at this time and therefore no meeting was held.
It was said in another quarter that the Telephone
Division would be apt to mark time until returns began coming in
from the telephone companies who have been ordered to submit
data with regard to routes, contracts, agreements, and so on.
Telephone companies have been given until Sept. 1st to
furnish this information.
XXXXXXXX
TELEVISION WITHOUT LENSES VISIBLE THREE SIDES PROMISED
Television images, visible in a lighted room, and cap¬
able of being viewed simultaneously by an audience of several
dozen persons through a system of wide-angle projection achieved
without lenses or prisms, were shown Wednesday in New York by
the National Television Corporation at 52 Vanderbilt Avenue.
The apparatus was developed under the direction of Arno
Zillger, Chief Engineer, and John W. McKay, Vice-President of
National Television. The receiver will be ready for manufactur¬
ing this Fall. Mr. McKay said, "provided suitable television
broadcast programs are available on the air. "
Two models will be made, one a small cabinet for use
on the living-room table, incorporating both receiver and picture
mechanism. The other a large floor-type machine of the console
variety. Space will be available in the large model for instal¬
lation of a sound receiver.
The entire radio receiver and picture-producing mechan¬
ism is housed, in a space 13 by 15 by 22 inches. The unit produc¬
ed black and white pictures about six inches square. Operation is
from ordinary home-lighting alternating current power and the
entire set consumes about as much current as an ordinary electric
lamp.
A novel picture illuminating lamp, from the rays of
which the images are created, is part of the picture machine.
The bulb is actuated by the output tube of the ordinary short¬
wave receiver.
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Instead of coming through a scanning disk, the rays of
the "picture lamp" play against a revolving "mirror drum", made
of small metal reflecting surfaces assembled in the form of a
spiral. The eye reconstructs the intercepted view when the
observer gazes at the rapidly turning drum. No lenses or prisms
are used. Pictures can be seen from three sides of the device.
This permits a large group to view the picture without looking
over the shoulders of others. Only two control knobs are used.
The concern also has developed compact sound- sight
transmitting equipment for use by broadcasting stations, capable
of sending out aural-visual programs either from direct studio
pick-up or motion-picture films.
Assuming that practical receiving sets for television
can be retailed at $300 a set, at least 700,000 sets would have
to be sold to the public at an initial investment of $210,000,000
before the nucleus of television broadcasting as an industry
would be laid.
This declaration has been made by Alfred J. McCosker,
head of WOR, Newark, and President of the National Association
of Broadcasters, in a reply to a questionnaire submitted by
Leon Litt, television researcher, who has been checking official
opinion as to the claimed possibility of practical television
late in 1935.
McCosker’ s estimates are that 80 transmitting stations
would have to be established to service a television-equipped
public and that the capital investment required for these trans¬
mitters would be $40,000,000, while the programming of these
outlets would cost $53.-000,000 annually. WOR alone, if operat¬
ing on a television basis, would have to prepare 21,000 shows of
15 and 30-minute duration per annum.
Thus McCosker’ s estimates of the preliminary financial
investment confronting television can be summed up:
Sets . $210,000,000
Stations . 40,000,000
Programs . . . 58,000,000
$368,000,000
It is stated that broadcasting today operates on
capitalization of about $25,000,000.
XXXXXXXX
12 -
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•. J
' •
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
IV ! .
A M
7; 3' 010; It 1
Page
Commission to Hear Ohio-Mich Stations Applications . 1
Education & Religious Stations Hearing Oct 1 . . . . 1
WJSV Announcer Believes Critic Poison Pen Writer . . 2
Believes New Amateur Regulation Unenforceable ... 3
Entire Commission May Consider Appeal Case Only . . 5
Charging Radio Talk Banned, Candidate Sues .... 5
Another Shake-up in Commission Office Arrangement. 6
Reduced Rates Granted to Cincinnati Convention . . 7
RCA Public Relations Expert Turns Military Writer . 7
Geographic Official Praise radio’s Part in Strato¬
sphere . 1 . 8
Business Letter Notes . 9
New Gilliam Virginia Station Call Letters WSVA ... 10
Declares Dill Means Business and Will Not Run ... 10
Texas Editors Bar Election Broadcasts . 10
Bogus John B. Kennedy Presents Himself . 11
Mutual Broadcasting Chain for Chicago Area? .... 11
CONFIDENTIAL — Not for Publication
; rtUWOCiSHM (. Inc. i
LEGAL DEPARTMENT j
n . I ® 1 1] W II Ip)
su “ AUG - 1 1934 '
u. m ; 1
»7i8i9iWi1Mi
INDEX TO I SSUElHF" JULY "'31,1934.
i — i
No. 745.
i:
.. ■>
COMMISSION TO HEAR OHIOfMICHIGAN STATIONS APPLICATIONS
The applications of several Ohio and a Michigan
station to change their frequencies have beer’ deemed of such
importance that the entire Communications Commission will hear
the arguments September 24th.
The stations seeking relocation are: WKBN Youngstown,
which asks to change res frequency from 570 to 610 kilocycles,
with 500 watts power nightime and 1000 watts daytime, WAIU
Columbus, from 640 Kilocycles to 570 kilocycles with increase
of power from 500 to 750 watts night, 1,000 watts daytime to
share with WUSU, Columbus; and WJ AY, Cleveland from 610 to 640
Kilocycles with increase in power of 500 watts to 1,000 watts and
specified hours.
In connection with the ^proposed shift WXYZ, the
Kunsky Trendle Broadcasting of Detroit has applied for a new
station to operate on 640 kilocycles, 10,000 watts, and the
Portland Broadcasting System of Portland, Me. has applied
for a new station to operate on 640 kilocycles with 500 watts
power.
After disposing of the above matter the Broadcasting
Division granted the following applications:
Beard's Temple of Music, Jonesboro, Ark. Granted Mod. of CP
to extend completion Date to October 1,1954. Montogomery , Ala.
Montgomery Broadcasting Co.Inc., Granted Auth to determine
operating power by direct antenna measurement. Orlando , Fla.
Orlando Broadcast ing Co. , Granted Spec Temp Auth to operate
with additional power of 750 watts at night for a period ending
3 AM Sept 1, Joplin, Mo. Joplin Broadcasting Co. granted
Spec Temp Perm to operate from 9:30 PM to 12 midnight CST August
7th. Iowa City, la granted Spec Temp Auth to operate from
9:30 PM to midnight CST Aug 3rd.
XXXXXXXX
EDUCATIONAL AND RELIGIOUS STATIONS HEARING OCT 1
The Broadcasting Division of the Federal Communica¬
tions Commission has set Monday October 1st for a heating
in the question of allocating fixed percentages of broadcasting
facilities to religious, educational and other types of non¬
profit stations. Written notice of those who intend tb
appear must be furnished to the Commission by September 20.
The Commission is required to submit its recommendations
to Congress in this matter February 1st.
XXXXXXXX
July 31,1934.
WJSV ANNOUNCER BELIEVES CRITIC POISON PEN WRITER
Always desirous of stating the facts and never of
intentionally doing an injustice to anyone, it is a pleasure
to present here a self-explanatory letter received from
Arch McDonald, announcer of station WJSV in Washington.
11 In your Radio News Service of July 17th, you
reprinted a letter written to the Washington Post by an
unsigned listener and published by that paper a few days
earlier." Mr. McDonald writes, "I feel that the re-publi¬
cation of the Post letter was unfair to me since I was not
asked to present ray side of the controversy at the time;
the letter merely being reprinted without comment. "
"I have been adverse to criticism over the air and
have tried to benefit by the suggestions offered. On the
other hand, I have never read over the air, one single commu¬
nication in which I was praised by a listener and I think you
will agree that every person in radio gets one of these letters
occasionally.
"The writer of the letter referred to, made a false
statement when he said, - - 1 The letter was read over the air
by McDonald and was ridiculed by him. Mr. McDonald, in address¬
ing the radio audience, stated "Ladies and gentlemen and Mr,
Van Sant," indicating that the writer of the critical note was
no gentleman. '
"What actually happened was this. I read the letter
of criticism and then followed it with this lone comment. ‘Ladies
and gentlemen and especially Mr. Van Sant. Whether this man is
right or wrong, I'll have to admit he certainly get me TOLD.' -
and this statement can be verified by any person who was listen¬
ing to the baseball broadcast that afternoon.
"May I also add that this letter was not the only one
sent by this person who signed the name Van Sant. This station,
myself personally and two newspapers, all received letters of the
same nature but signed with different names. We compared five
of these letters and found that every one was written on the
same stationery, using the same phrases, misspelling the words
and signed in the same handwriting and typed on the same type¬
writer.
"What malice or hate this anonymous poison pen writer
has against me, I do not know. But I do know this. I have
always shot straight from the shoulder, done my own thinking
and conducted my broadcasts without fear or favor, simply ‘ calling
them as I see them', - to use a baseball expression. This I
shall continue to do and I have no fear of the outcome. May
I thank you in advance for the same courtesy extended the other
letter, in the presentation of my side of this matter?"
-2-
July 31,1934.
BELIEVES NEW AMATEUR REGULATION UNENFORCEABLE.
It is the belief of Col. Clair Foster, W6HM, prominent
West Coast Amateur radio operator that the Communications
Commission’s regulation that copies of amateur radio operators
messages must be made and filed would be held ,f unreasonable"
by the courts and therefore unenforceable.
The new regulation, a part of Rule 386, reads as
follows: "Message traffic handled. If record communications
are handled in the regular message form a copy of each message
sent and received shall be entered in the log or retained in
file for at least one year. "
"Some amateurs handle many hundreds of messages a
month for the public," Colonel Foster declared. "Of course all
on their own time and at their own expense. I myself have
handled as high as 687 separate radiograms in one month, many
of them of over 100 words; and mine are all trans-Pacific. We
have no time to be making and preserving copies of messages. If
we do that then we singly must cut down the service and handle
only about half as many."
"Many amateurs will stop their service altogether
rather than conform to this new pronouncement. And that is
the purpose of this commercially inspired regulation. There
is no earthly reason for applying commercial practice to an amateur
service that is costing the beneficiaries not one penny."
Colonel Foster, who has been at odds with the American
Radio Relay League, a national amateur organization sharply
criticizes Kenneth B. Warner, secretary and general manager of
the organization, in the July issue of Radio Magazine published
in San Francisco.
Mr. Warner was hired as a Secretary of the American
Radio Relay League in April 1919, at $30 a week, plus a bonus
of 25 cents on each yearly dues from members, plus again 25 per
cent of the net monthly profits of QST, the ARRL Magazine."
Colonel Foster writes, "At that time the members
were licensed amateurs, in accordance with the fundamental pur¬
pose of the ARRL - a league of transmitting amateurs. There
were subscribers to QST who were not members, including commercial
radio people and other non- amateurs. From these subscribers, of
course, there were no "yearly dues" on which Warner could levy.
At that time the "net monthly profits" of QST were little or
nothing. Nevertheless, Warner’s extra money above his salary
up to November 1 of that year amounted to $898. Keep in mind
-3-
7/31/34.
that at this .time all of the ARRL's assets, including Q,ST, were
the property solely of the amateurs. By the beginning of 1920
Warner had a plan under way for switching things around so that
everybody who subscribed to QST should become thereby a"member"
of the ARRL and the subscription money of each should become
"yearly dues" and thus subject to the yearly levy under the
wording of Warner's contract.
"Then the switch made subscription money "yearly dues"
and the scheme worked so well that Warner took from the treasury
in 1920 in addition to his salary, $3,715. And it worked so well
that the next year, 1921, he took out, in addition to his salary,
$5,972. And it v/orked so well that in the following year, 1922,
in addition to his salary, he took out $10,255. And it worked
so well that the next year, 1923, he took out, in addition to
his salary, $10,322. And it worked so well that in the first
six months of the next year, 1924, in addition to his salary, he
took out $5, 693.
The new d_eal, effective July 1, 1924, prescribed a
salary of $600 a month plus 10$ of the net profits of the whole
organization.
"Warner's additional perquisites for the first half of
1924 were $5,699. His commissions for the second half under the
new arrangement were $1,035. His total salary and all, for the
year amount to $11,114.
The next two years there were no profits, so Warner had
to struggle along on $600 a month. But in 1927 he drew down a
total of $9,364 and in 1928 a total of $9,978.
"At the 1929 meeting of the board Director Babcock moved
to give Warner a straight salary to begin January 1 of that year
with no commissions. Counsellor Segal, who was then a director,
Jumped up and moved to amend by striking out the $10,000 and
making it $12,000. Nobody bit, so it had to stay at $10,000 for
that year. At the 1930 meeting somebody moved to make it
$11,000, together with a boost of $500 a month for A. A. Hebert,
Treasurer of the ARRL. The depression was well under way and
thousands of fine radio men with families were walking the streets
with no jobs at all, so Paul Segal, Counsel of the organization,
no doubt felt that Hebert could make out on $500 a month; but he
moved to amend by giving Warner $12,000.
"Throughout the past four blighting years, 1930-1933,
most of those fine radio men with families are still hunting jobs
while during that time Warner drew out of the ARRL treasury just
$44,206.03! I hate to make myself niggardly by mentioning those
3 cents but I must do so in the name of accuracy. '*
XXX -X XXX XXX
-4-
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July 31,1934.
ENTIRE COMMISSION MAY CONSIDER APPEAL CASES ONLY
Although the divisions are now scheduled for regular
meetings, the Broadcasting division, Tuesday, the Telegraph
division Wednesday, and the Telephone division, Thursday, there
have th«us far been two meetings of the entire Communications
Commission and these were largely for the purposes of organization*
Evidently, at present at least, it is the intention
of only assembling the full Commission in the case an applicant
desires to appeal from the decision of a division chairman. As
yet no case considered by the new divisions has reached the
point of an appeal and until then it is believed the Commission
as a whole will not be called together unless other matters de¬
mand its attention.
Commissioner Paul Walker, Chairman of the Telephone
division, is still in Oklahoma and is not expected to return to
Washington until about August 15th.
JC.XXXXXXXXX
HARG-ING- RADIO TALK BANNED, CANDIDATE SUES
Charging censorship of a campaign speech, Paul Stewart,
publisher of the Antlers (Okla) American, state senator and candi¬
date for corporation commissioner, Monday filed suit in district
* court in Oklahoma City for $30, 022 .40 damages.
Stewart made WKY Radiophone Co. , Mistletoe Express
Service and the Oklahoma Publishing Company, publishers of the
Daily Oklahoman and Times, joint defendants.
The suit resulted from action of WKY authorities Satur¬
day night in requesting Stewart to delete portions of a radio
address scheduled for 9 P.M. When Stewart refused to make changes,
station officials gave him a refund on his contract for the fifteen
minute broadcast.
He charged in his suit that WKY "unwarrantly , without
justification or any lawful authority" sought to strike from his
speech "certain references to the Oklahoma Publishing Company. "
In publishing a statement by Stewart as a "Letter to the
Editor", the Oklahoman Monday said Stewart was 'asked to delete
certain phrases .regarding his opponent held to be libelous," and
that when he refused, WKY refunded his money, Stewart declared
this as untrue. He said the objectionable phrases concerning
his opponent were cut out and that the station’s real objection
was to his reference to the Oklahoma Publishing Company.
He said the dispute was over this paragraph:
-5-
July 31 , 1934.
"The Oklahoma Publishing Company, a foreign Corporation,
which owns WKY, the Oklahoma Farmers- Stockman, the Daily Oklaho¬
man, the Times, and the Mistletoe Express, have opposed me through
their newspapers in their editorials. A few years ago the Federal
Trade Commission made the ulitities go out of the newspaper busi¬
ness and it is my humble judgment that the Oklahoma legislature
and the state corporation commission should make the newspaper go
out of the utility business. I pledge an earnest effort to this
end. "
His suit asked for $2,240 which he said paid for news¬
paper advertising to advertise the speech. He asked $5,000 for
"irreparable damage" for "being deprived of his right of public
address," and charged that "multiplied thousands of people who
would have listened were deprived of their right of hearing his
remarks.
He asked $25,000 punitive damages "on account of the
unwarranted, unjustified, unlawful and malicious acts of said
defendants. "
"I have no statement to make," Edgar T. Bell WKY radio
station manager and business manager, Oklahoman and Times, told
Editor & Publisher when asked for a statement on the Stewart suit.
XXXXXXXXXXX
ANOTHER SHAKEUP IN COMMISSION OFFICE ARRANGEMENT
Just about the time visitors were beginning to be able
to find their way about the Federal Communication' s Offices, in
the immense new Post Office Building, without the aid of a guide
there has been another shakeup in the location of the Commission
offices. The Legal Division has been moved to Room 5321, the
Engineering Division to Room 7213, and the Press Division to
Room 4207. Commissioner Case has been moved to Room 6241, but
the offices of the other Commissioners are unchanged, Judge Sykes
in 6207, Colonel Brown 6209, Dr, Stewart 6235, Mr. Walker 6235,
Mr. Gary 7240, and Mr. Payne 7241.
The new arrangement scatters the Commissioners over four
floors, the fourth, fifth, sixth and seventh, with the License
Division in the Interstate Commerce Building, which may be reached
from a hallway of the Post Office Department building on the
seventh floor. It is a very inefficient arrangement as some of
the offices in addition to being on different floors are almost a
city block apart.
The latest story having to do with the size of the
two--block square Post Office Department building is about oa steno¬
grapher who went out to lunch, couldn't find her way back to the
office, and finally went across Pennsylvania Avenue to a. pay
telephone and called up her division chief for instructions
-6- .
July 31,1934.
how to locate her office. To add to complications on one of
Washington's hottest days, the air-cooling system failed to work,
for a time the water supply was cut off and to complete the
,j inx the elevators began to act up.
The air-cooling failure caused particular discomfort
because the building is not ventilated like buildings which are
not air-cooled and employees sweltered. It is reported that
it costs the Government $900 a day to operate this system.
One of the elevators which jammed caught Judge E. 0.
Sykes, Chairman of the Federal Communications Commission half-way
up as he was ascending to his office on the sixth floor*
XXXXXXXX
REDUCED RATES GRANTED TO CINCINNATI CONVENTION
A record attendance at the National Association of
Broadcasters Convention has been assured by the railroads grant¬
ing a reduced rate, according to Philip G. Loucks, Managing
Director of the Association.
"We had about 300 at St Louis in 1932, about 350 at
White Sulphur Springs in 1933" Mr, Loucks said, "but inasmuch
as Cincinnati is in the center of the heaviest station population
in the United States, with the South, East and middle West to
draw from, I believe the attendance in the Ohio City in 1934
will be close to 500. "
It is believed that the new WLW 500,000 watt station
will be a drawing card for many broadcasters who will feel that
it is worth a trip to Cincinnati to see this station alone.
The 50,000 watt WLW transmitter which we once thought
was a giant looks like a midget" Mr, Loucks declared, "I really
believe you could put old WLW transmitter in one of the panels of
the new station, "
XXXXXXXX
R. C. A. PUBLIC RELATIONS EXPERT TURNS MILITARY WRITER
In last Sunday's Washington Post appeared the first of
a series of vividly descriptive and historically accurate articles
on military engagements in which the city of Washington was the
prize to be won or lost. The writer was none other than Glenn
I. Tucker, director of Public Relations of the Radio Corporation
of America.
-7-
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July 31,1934,
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11 Mr. Tucker was formerly with, the New York World and
his hobby is military strategy and history.
Tucker’s initial article dealt with 1814 when follow¬
ing the Battle of Bladensburg the National Capital was defenseless.
He told how the victorious British swarmed into the City and
pillaged and fired its public buildings. Also how scarcely two
hours before Dolly Madison had fled to the protecting hills of
Virginia, and in the deserted White House, Admiral Cockburn
dined sumptuously by the flickering lights of the blazing City,
XXXXXXXX
GEOGRAPHIC OFFICIAL PRAISES RADIO’S PART IN STRATOSPHERE
Regarding the radio broadcast of the National Geo¬
graphic Society- Army Air Corps Stratsphere Flight, Dr. John
Oliver LaGorce, vice president of the National Geographic
Society said to-day:
"The short-wave radio broadcast arranged by the Nat¬
ional Broadcasting Company for the National Geographic Society-
Army Air Corps Stratosphere Flight was one of the most note¬
worthy examples of radio engineering it has been my good for¬
tune to hear. "
"Officials of the Geographic and Army Air Corps were
afforded the unusual privilege of hearing the entire handling of
the broadcast through special lines, which were run by the NBC
into the auditorium of the National Geographic Society and into
offices of the Chief of the Army Air Corps in Washington. In
Rapid City, representatives of The Society, The Army Air Corps and
the wives of Major Kepner and Captain Anderson were able to listen
in by means of a similar hookup.
"I am sure that radio communication with the strato¬
sphere flyers was of value to them because they were constantly
able to obtain accurate weather reports and the velocity of ground
wind along their course. They were also in a position to consult
their superiors in the Army Air Corps office, and to ask for advice
or aid, if needed.
"Personally I have never heard a more intensely dramatic
broadcast than that last three-quarters of can hour when the flyers
were in trouble and none of us on the ground knew what might
happen. No professional "thriller program" ever was able to
achieve a greater measure of agonizing suspense.
"The cheer that greeted the brief announcement that
the flyers had jumped and were safe was a genuine expression of
the joy we all felt that the drama had ended happily for the
three men concerned, "
-8-
BUSINESS LETTER NOTES
A public hearing on a code of fair competition proposed
by the advertising agency trade will be coinducted in the Hall
of Nations of the Washington Hotel, Tuesday November 7. William
P. Farnsworth, Acting Division Administrator will be in charge.
The proposed code has been submitted by the American
Association of Advertising Agencies.
Gen, Warner L. Wilkerson of the Confederate Army, a
resident of this city more than 65 years, died yesterday at the
home of his daughter, Mrs William D. Terrell of Livingston
Heights, Va. , where he had lived since becoming ill three months
ago. Mrs Terrell is the wife of the Chief of the Field Division
of the Communication1 s Commission.
General Wilkerson was 88 years old. As a boy of 14
he ran away from home enlisting as a private, served during the
entire Civil War and subsequently arose to the command of General.
WDAE, the Tampa Daily Times radio station has com¬
pleted the installation of new equipment and is operating on the
increased power recently granted. The station now has 2,500
watts during the day and 1,000 at night
Appeals have been filed in the D. C. Court of Appeals
by T. G. Roberts against a grant to KWKH, Shreveport, La., allowing
it to change its frequency from 850 to 1100 kilocycles and
against granting Station WWL, New Orleans, La. , unlimited time on
850 kilocycles.
Mr. Roberts was at one time interested in KWKH, but
since no longer connected with the station, it is likely that
the Commission will ask that the Appeals be dismissed.
XXXXXXXX
The President is very persuasive in such matters
and should he really want Senator Dill to run again he may,
of course, do so. I am confident, however, if Senator Dill
follows his own inclinations he will not seek re-election. "
XXXXXXXX
BOGUS JOHN B. KENNEDY PRESENT HIMSELF
The NBC Press Department has sent the following:
CONFIDENTIAL NOTICE TO RADIO EDITORS:
"We are informed that an individual representing
himself as "John B. Kennedy of Collier's editorial staff" has
victimized a writer in an Ohio City by passing a worthless
check. This man talks familiarly about well known newspaper
and radio people, and claims to be writing a series of articles
on midwestern cities on which he is consulting newspaper men
and historical authorities in t&ese cities. He has no connection
whatever with John B. Kennedy, former editor of Collier's, and
now special news commentator for the National Broadcasting
Company. This notice is given you for your information and
assistance in apprehending the imposter. "
XXXXXXXX
MUTUAL BROADCASTING CHAIN FOR CHICAGO AREA?
In announcing its decision not to affiliate with the
new American Broadcasting System network at the present time, the
management of WGN revealed that a number of advertisers, as well
as several outside radio stations, have sought to get WGN to join
in a mutual chain broadcasting operation. Such an arrangement
has good program possibilities, with resultant low costs for ad¬
vertisers, it was stated. This plan of mutual operation is in
the foreground for further consideration.
"The only thing WGN can be interested in from a chain
standpoint," the management said, "is in additional sustaining
and a few commercial programs of exceptional quality. Extensive
chain programming will not offer to WGN at this time as much as
it is able to make from its own programming activities. WGN is
not opposed to good net-work broadcasts, but during its past
affiliations with both of the major net-works they have always
wanted to give WGN more programs than it wished to take. "
Frederick H. Weber, formerly stations relations director
for NBC, is vice-president in charge of operations and station
relations of the new network.
-11-
r f ,
July 31, 1934.
NEW GILLIAM VIRGINIA STATION CALL LETTERS WSVA
The new daytime station authorized by the old
Radio Commission to be operated by M.K, Gilliam at Staunton,
Virginia, will be known as WSVA. It will operate on 500
watts on a frequency of 550 kilocycles. Mr, Gilliam, former¬
ly part owner of WMCA, New York, now resides in Washington.
XX. XX xxxx
TEXAS EDITORS BAR ELECTION BROADCASTS
The Texas Election Bureau, operated by the Texas
Managing Editors Association for more than twenty years as a
cooperative agency for gathering election returns for news¬
paper use, has announced that hereafter returns supplied by
it may not be broadcast or placed on bulletin board in or
outside of Texas.
The announcement of the bureau, which was in¬
corporated on July 10, said:
"In the past few years election news gathered by
the bureau has been used so largely by persons who contributed
nothing to the expense as to destroy its value to the papers
which do contribute.
"This election news has been obtained from bulletin
boards and from broadcasts. Attorneys advise that when news is
broadcast or put on bulletin boards it becomes public property.
Hence, to protect its rights in this news, the bureau has pro¬
hibited the use of its returns on bulletin boards, and incor¬
porated so that it may assert in court its property right in
whatever news it supplies to its members.
"The ban on broadcasts and bulletin boards is mere¬
ly a move to preserve the only agency we have for gathering
returns at all on election night. "
XXXXXXXX
DECLARES DILL MEANS BUSINESS AND WILL NOT RUN
Notwithstanding the report that Senator Dill of
Washington, co-author of the Communications Act, might decide to
seek re-election despite his declaration that he would retire,
a friend of the Senator's in the Capitol said he felt certain
Mr. Dill would not make the race.
"While Senator Fill has until August 11 to formally
file his intentions, I am of the opinion that he will not run
again despite considerable pressure which is being brough
to bear upon him to do so9 11 this friend said. "It is expeeted
that Senator Dill will discuss the situation with President
Roosevelt, while the flatter is the west coast and of course
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2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
iiMMl.al RRQADCASTiiiG C .... Inc. \
legal department
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INDEX TO ISSUE % AUGUST 3, 1934.
Broadcasters Buckle on Swords for Educational Hearing . . 2
Insurance Premium collected through coin-operates radio. .
CBS New Accounts and Renewals .
CBS adds to Its Staff .
Court Holds Ken-Rad Must Pay to RCA Licensees .
Business Letter Notes .
Federal Gold Price Leak Probe Started by Telegraph Div . .
Telephone Division Seeks Additional Data ... .
Mackay Radio Appoints Marine Supt;&Wash Mgr .
RMA Takes Up Cudgel Against Spain’s Discrimination ....
Voice of Safety to Warn Capital Traffic . 9
Do Radio Stars Earn Their Pay? . 9
Prall, Commissioner (Communications) in Auto Accident. . . 12
Norman Baker Tries to Come Back . 12
CD CD -O <3 CL trim ^ ^
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August 3,1934.
BROADCASTERS BUCKLE ON SWORDS FOR EDUCATIONAL HEARING
Commerical broadcasters are not under- estimating
the fight they will have to make Monday October 1st, when
the Broadcasting Division of the Federal Communications
Commission will give them their chance to be heard in the
Commission's study of the proposal that Congress by statute
shall allocate fixed percentages of radio broadcasting
facilities to particular kinds of non-profit radio programs.
"This action initiates the most important survey
of broadcasting yet undertaken," Philip G. Loucks, Managing
Director of the National Association of Broadcasters de¬
clared, calling the commercial broadcasters to arms.
"It opens the door to every person and group of
persons who have from tine to time opposed commercial broad¬
casting and gives them an opportunity to make public record
of their Objections.
"Upon the report made by the Commission, Congress
in the next session undoubtedly will formulate a permanent
policy with respect to the licensing of broadcast stations.
"The National Association of Broadcasters will act
as the coordinating agency through which the broadcasters
will present their side of the case. But every station,
large and small, network and non-network, must cooperate
closely with the Association in assembling the vast amount
of data which must be presented.
"The National Association of Broadcasters as a body
is opposed to the parceling of channels to special grpups and
will present facts to substantiate this position.
"This important hearing, which may last from four
to eight weeks, calls for prompt action on the part of the
Association and the Association musrt have the unstinted support
of every station interested in the perpetuation of the American
system of broadcasting. To collect the vast amount of data
necessary to coordinate the presentation of this data, and to
meet the challenge which is thrown out to all broadcasters by
it will demand the closest cooperation from each and every
broadcaster who is interested in a fair and adequate presenta¬
tion of the broadcasters' case."
-2-
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The commercial broadcasters are naturally aroused
over any plan to increase the "non-profit time on the air as
this Would necessarily mean the taking away of some of the
facilities of the commercial stations. Also the broadcasters,
in principal , are opposed to Congress taking a hand in al¬
locating radio facilities. This would make radio more of a
political football than ever and would virtually amount to
Congress becoming a super- Communications Commission.
Indirectly responsible for the Commissions present
investigation is Rev. John B. HarVey, Superior G-eneral of the
Paulist Fathers, owners of station WLWL in New York. Father
Harvey after being turned down by the Federal Radio Commission
for additional broadcasting hours for his station went on the
warpath. He declared that WPG, a commercial station at
Atlantic City was on the air 110-| hours a week while WLWL,
because It was obliged to share the same channel, was only
allowed to broadcast 15-jjr hours a week.
The Paulist Father asserted that the commercial
broadcasts have corralled 97-g- per cent of the broadcasting
facilities of the Unites States* His contention was that
educational stations should have at least one quarter of
the country's broadcasting facilities.
"How has education fared at the hands of the Federal
Radio Commission?" "Most ignominiously.' " Father Harvey de¬
clared dramatically when testifying before the Senate Inter¬
state Commerce Committee,, " " At one time there were in the
United States 105 stations classified as educational* Today
there are but 30. What has become of the other 75 and why?"
Following the Driest' s appearance in Washingtin
thousands of telegrams and letters paured in to Congress from
all parts of the country, resulting in.. several bills being
introduced in the Senate and House that 25 per cent of all
broadcasting facilities be allocated to cultural, educational,
religious, labor and other non-profit making stations, notably
one by Senator Robert Wagner, Democrat, New York, and Senator
Hatfield, Republican of Vest Virginia.
Later the Wagner-Hatf leld bill was incorporated
as an amendment to the Communications Act. When the amend¬
ment came up for consideration in the Senate, Senator Fess,
Republican of Ohio said; "Everyone must be Impressed with the
pollution of the air for commercial purposes until it is
actually nauseating. The practice is to turn off the radio
about as quickly as one gets to it, because so much of the
matter broadcast is offensive.
"Senator Wagner will probably recall that sometime
ago I offered an amendment to the Radio Act allocating not
less than 15 per cent of the time for educational purposes.
I never could get any reaction in favor of it.
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As soon as it was offered the stations began a
propaganda against it; just why I do not know, and the
same thing would be true here."
Despite this severe criticism of the broadcasters
Senator Fess nevertheless voted against the 25 per cent
amendment. It was beaten in the Senate by a vote of 42
to 23. Subsequently, in conference a clause was inserted
in the Communications Act calling for a study of the entire
non-profit radio programs situation by the Commission,
stipulating that a report with recommendations should be
made to Congress not later than February 1st.
XXXXXXXX
INSURANCE PREMIUM COLLECTED THROUGH COIN-OPERATED RADIO
Insurance premiums and money to pay for a radio set
are collected by a Paris, France, company through the use of
a slot attachment, according to Radio World.
Intended to appeal to listeners who have young
children for whom they desire to make provision, the scheme
calls for supplying each client with a radio receiving set
which can be operated only by the insertion of a coin.
For every franc put into the slot, the set works
for 24 hours, it is explained. At the end of the month the
money is collected by the company and placed to the policy¬
holder's credit against the annual premium and the cost of
the radio set. After 18 months the set becomes the property
of the holder, provided payments have been met regularly,
and a reduction is made in the amount which must be inserted
to maintain the insurance.
Larger sets to operate with two or three francs are
also available, it is stated, so that larger payments may be
made.
XXXXXXXX
CBS NEW ACCOUNTS AND RENEWALS
RENEWAL -Was ey Products Inc. , New York(Kremel Hair
Tonic and other Wasey Products) Starts - September 10,1934,
Tues to Fri Incl. 12 noon to 12:15 P.M. EDST- Sunday 7:00 EDST(PM)
24 stations -Program 11 The Voice of Experience. "
RENEWAL - American Home Products-A. S . Doyle Floor Wax
starts Sept 30, 1934- Sunday 2:30-5:00 PM- 47 stations. Program -
"Lazy Dan, The Minstrel Man with Irving Kaufman".
NEW - MacFadden Publications, Inc(True Detective
Mysteries) Starts September 5, 1934-Wednesday 10:30 to 11:00 PM
Program True Detective Mysteries' Crusade Against Crime. Agency-
Ruthrauff & Ryan, Inc.
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A. B. S. ADDS TO ITS STAFF
Numerous additions to the staff of the American
Broadcasting System by George B.Storer, president of the
new network, have been made, which include - Hampton G-.
Wall, Toledo attorney, general counsel. Mr. Wall has been
a member of the law firm of Fraser, Hiett, Wall and Effler
of Toledo. He will have his offices in Mew York.
Philip F. Whitten has been made sales director of
WMCA. Mr Whitten entered commercial broadcasting in 1931
as an account executive of the Columbia Broadcasting System.
In March 1933 he resigned from CBS to become sales manager
of WINS.
WMCA is the New York key station of the A.B.S.
Karl Knipe, former sales manager of CBS is director of sales
of ABS
XXXXXXXX
COURT HOLDS KEN-RAD MUST PAY TO RCA LINCENSEES
Judge Dawson, sitting in the District Court of the
United States for the Western District of Kentucky, has handed
down a decision in the case of the Radio Corporation of America
against the Ken- Rad Corporation, holding that, under a tube
license agreement between the parties, the Ken-Rad Corporation,
as licensee, must pay royalties on sales of tubes to all other
licensees of the Radio Corporation of America, with the sole
exception of se.les to tube lincensees licensed to make and sell
radio tubes under license agreements similar to the one in¬
volved in the litigation.
In his opinion Judge Dawson stated that no ambiguity
existed in the contract with reference to the obligation of the
Ken-Rad Corporation to pay royalties on sales to licensees of
the Radio Corporation of America. "I do not see”, said Judge
Dawson, "how it is possible for any one to misunderstand or to
have any doubt of the meaning of Section 4 of Article 3, if it
is read in connection with the entire contract and the subject
matter of that contract is kept in mind. The words "licensee"
and "Licensees", used in that section, to my mind so clearly
refer to licensees licensed to make and sell radio tubes under
the patents referred to in the contract that it is difficult for
me to understand how any other construction of the language
used can be seriously contended for. "
XXXXXXXX
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Mackay Radio and Telegraph Company has concluded
negotiations with "Radio Austria" for the opening *
of 24 hour service handling all classes of Telegraph
traffic between the United States and Austria through the
radio stations at Sayville, L.I. and Vienna, This is the
only direct radio circuit between the United States and
Austria, a Mackay announcement states.
Carlton Smith for NBC and Bob Trout, Columbia,
White House announcers went to the Pacific Coast to join
President Roosevelt. The plan is for Columbia to pick
up the Glacier Park speech for NBC and NBC to handle the
Green Bay job for Columbia.
William S. Paley, President of the Columbia, is
believed to be in the midst of negotiations with local
station owners for an outlet to be brought or leased by
CBS, the Los Angeles correspondent of Billboard reports.
"Rumor ties him up with Earle A. Anthony, owner
of KFI and also interested in another station. Anthony's
differences with National Broadcasting Company may have
something to do with this particular angle, but the fact
that Paley is after a Qoast-owned CBS outlet appears to
be quite definite. "
The detailed tabulation just made by Lawrence
D. Batson of the Electrical Division of the Department of
Commerce showing the number of receiving sets in use in
various countries of the world, and the number of broadcasting
stations of each of the principal wavelength divisions, is
now available in multigraph form.
"I am Milton Biow," said a voice oyer the telephone
to Miss Alice Wood, hostess at the desk of the main studio
floor of the NBC headquarters in Radio City. "My agency handles
the Philip Morris program. Will you please prepare the clients
room for me and my party? We are on the way over." Miss Wo od
blinked and looked around. There was Milton Biow, whose agency
does have the Philip Morris advertising account, standing a few
feet from her desk. She turned the call over to him. The voice
on the wire repeated the request. "I'm sure there must be some
mistake -I'm Milton Biow and I'm already here." "Are you sure?"
the caller demanded. "Well I always have been, up to the present
anyway. " "My error, " the strange voice answered weakly and
hung up.
XXXXXXXXX
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8/3/34.
FEDERAL GOLD PRICE LEAK PROBE STARTED BY TELEGRAPH DIVISION
The Federal Communications Commission last Wednesday
launched an investigation into every phase of telegraph company
operation, looking into the record of alleged monopolistic
practices and probing into the long unsolved mystery of how
speculators learned gold price quotations ahead of Treasury
announcements .
The commission also began inquiries to- determine
what, if any, use was made of telegraph facilities by finan¬
cial speculators in mysterious advance reports dispatched
out of Washington last winter on Treasury gold price quota¬
tions.
One order of the commission called on telegraph
companies to furnish full data on rates. Annexed to the
order were 45 questions, asking information on classes of
service, special handling of messages and extra charges.
The commission sought to discover if either Western
Union or Postal Telegraph has contracts for exclusive rights
to send out service on ball games. It was curious to learn
whether big wire customers are perf erred service, and whether
attractive offers are made to get business.
By Oct 1, the telegraph companies must send the
FCC copies of all their contracts, particularly those that
may have to do with arrangements with railroads and other
concerns for exclusive service privileges.
Another item was whether legitimate cash business
is being diverted over sub-leased wires that amount to private
systems. The FCC wanted to know whether such leased facili¬
ties are used for the business intended, or if everybody with
access to the wires may use them for private telegrams.
X XX X X X X X
TELEPHONE DIVISION SEEKS ADDITIONAL DATA
The regular meeting of the Telephone Division of
the FCC Thursday was hot held because of the absence from the
city of Commissioner Walker who is in Oklahoma. The da.y before
the Division held a short meeting presided over by Commissioner
Case at which the following General Order (No. 4.) was adopted:
"That every carrier subject to the - Communications
Act, engaged principally in wire telegraph by October 1,
shall file with the Commission, a verified report in duplicate
showing the method, by which and the extent to which it is
furnishing interstate or foreign wire telephone service.
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"The Report shall indicate clearly among other
things the types and classes of wire telephone service
rendered by such carrier; the condition upon which the
service if offered; the rates charged and whether such rates
are the same as, or higher or lower than rates of competing
telephone carriers for similar services; the facilities offer¬
ed; the total income derived from such service and from each
class of such service for each year beginning in 1925 and
the ratio of such revenues to the total revenues of the
carrier for each year reported; and where such service is
offered on a subscription or contract basis, the number of
subscribers or persons contracting for each class of service
for each year beginning with 1925.
XXXX XX XX
MACKAY RADIO APPOINTS MARINE SUPT;AND WASHINGTON MANAGER
Mackay Radio announces the appointment of Mr. Arthur
F. Wallis as Marine Superintendent of its Atlantic Division
succeeding Mr. E. Girard who is appointed District Manager
at Washington, D, C, in charge of Mackay Radio’s new stations
and offices there.
Mr. Wallis installed and operated some of th-e Navy’s
first radio equipment and served as radio operator and chief
operator on shipboard and at shore stations in the Navy until
1910, and returned to the Navy as Communication Officer in
the War, attached to Third Naval District in New York, serving
as radio censor, traffic officer and officer in chagre of
aircraft radio.
Mr. Wallis resigned his commission in 1921
and joined the Independent Wireless Telegraph Company.
In 1925 he entered the employ of the Tropical Radio
Telegraph Company and went to Mackay Radio from that company
in the Spring of 1934,
X X X- X X X X X
RMA TAKES UP CUDGEL AGAINST SPAIN’S DISCRIMINATION
Following the report that Holland was endeavoring
to negotiate a treaty with Spain whereby Dutch interests would
be allowed to export 70% of the receiving sets into that Country
and the rest of the World only 30%, Eond Geddes, executive
vice president of the Radio Manufacturers Association has filed
a stiff protest with Secretary of State Hull and Secretary of
Commerce Roper.
Mr. Roper acted immediately by cable advising commercial
attaches in both countries of the displeasure of the United States.
Secretary Hull has promised to bake similar action.
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VOICE OF SAFETY TO WARN CAPITAL TRAFFIC
"The gentleman with the purple spats and orange tie
will kindly step back to the curb until traffic passes.
Thank you. "
It is the courteous "Voice of Safety" speaking and
the scene is apt to be most anywhere downtown in the National
Capital after 10 a.m. Wednesday. The described gentleman
must do as he is told, or else - - . This or something like
it will be in order as the second step in Washington1 s new
traffic safety campaign is taken. The white automobile,
spic and span with black lettering - "Vod.ce of Safety" will
make it's official debut at ceremonies near the Capitol Plaza.
From a loud-speaker on the automobile police will
issue polite warnings and instructions to motorists and
pedestrians .
Captain Milton D.Sm&th, second in command of the
Traffic Bureau, recommended four of his policemen as
alternating crews for the car. The men work in 8-hour
shifts, patrolling downtown streets 16 hours a day.
XXXXXXXX
DO RADIO STARS EARN THEIR PAY?
"Every penny the sponsors spend on radio programs
and the cost runs into millions of dollars a year, must come
back and show a profit. Yet stars are hired at salaries
which are stated to range from $1,000 to $7,500 for a single
broadcast, a.nd "time" on a major network costs as high as
$15,000 an hour," Robert Eichberg writes in "Radio Stars".
Add these together, then addthe cost of an orchestra and
other artists in the show. Put the broadcast on two net¬
works instead of one, and itcan run into as much as $50,000
a performance, more than it costs to stage many Broa.dway
shows for ane entire run," the writer continues.
"How can the sponsors afford it? Salaries paid
radio artists are said to be $100,000 a year for "Amos 'n'
Andy", $3,500 a performance for Rudy Vallee, $7,500 each for
Eddie Cantor, Ed Wynn and Will Rogers, $5,000 for A1 Jolson
and equally astounding fees for other stars.
"Surely these entertainers must be super-salesmen of
the air if their broadcasts are to pay for themselves. Of
course, they make us listeners more familiar with the names
of the products they advertise, but do they bring new cus¬
tomers into the sponsor’s retail outlets?
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8/3/34
’’Let’s look at some confidential figures and find
out. Here; for example, is Ed Wynn, who heads a show on 54
stations of the red network st 9:30 E.D.S.T. Tuesday nights.
Wynn is said to get $7,500 for his appearance, to which
must be added fees paid to G-raham McNamee, the Fire Chief
Band, Don Vorhees, and the male quartet. Then on top of
that add about $7, 700, the cost of time on the network for
one-half hour. Texaco has to sell quite a few gallons of
gasoline to write off the weekly cost of that show which runs
into about $20,000.
"Well what results do they get?
"Remember that silly little fireman’s hat Wynn
wears when he poses for publicity pictures? That "kady"
gives the key to an analysis of Texaco gas sales which are
directly attributable to Wynn’s broadcast, for during his
program it was announced that you could get a copy of the
foolish fedora by going to any Texaco filling station and
asking for it.
"Optimistically the sponsors ordered 1,000,000
hats for sale to their dealers. Bango.’ In a few days
the hats were all gone, andthey ordered that many more to
satisfy the demand; 2,000,000 hats, surely that was enough.
But was it? Not on your life. They had to buy 1,000,000
more.'
"Three million - count ’em, 3,000,000 - hats
costing the service stations 7 cents each were demanded by
auto-owning, gasoline-buying radio listeners. And each hat
given away meant a sale of Fire Chief gas, many to new
customers at least some of whom, it is hoped, remain users.
Ed Wynn himself says, "I spent 29 years plugging
the name ’The Perfect Fool.' Now, in a few short weeks, it's
of no use. I am now ’The Fire Chief and not even my best
friends will call me anything else. "
"Why he is so popular that when ex-President
Hoover over-lapped Wynn’s time with a campaign talk in one of
the hottest political battles of history of the United States,
some 6,000 people telephoned the network and complained
about it.
"That'll do for the Chief. Let’s look back a year
or two at the Stebbins Boys, who as aerial representatives of
Swift & Co. , put on a sketch in which they were supposed to
be editors of a small-town newspaper. On three nights they
announced that anyone writing to them would be given free
copy of the paper. Then the fun began.
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8/3/34
The first day there were only about 2,000 letters and everybody
was disappointed. The next day 28,000 were received and the
third day an additional 35,000. Then came the week-end, and
Monday found 157,000 more letters from subscribers until
finally at the end of a week their paper had a circulation
of nearly 350,000 which is bigger than that of most newspapers
in the large cities, or of the national magazines.
"John and Esley Stebbins, in case you have forgotten
were the characters played by Arthur Allen and Parker Fennelly,
both veterans of the legitimate stage. Allen jumped from
stock to Broadway where he played character parts; Fennelly
played Hamlet on the road, touring and playing New York alter¬
nately for some 15 years. Their radio acting, however,
won them more fame on the legitimate stage than did. all the
years they trod the boards, for the acme was reached when the
curtain line of a melodramidjiit was, ’’Now my dear sir, you
may go home to your radio and listen to the Stebbins Boys. "
"Was Swift & Co.'s advertising manager, pleased
with their work? He said, "In 8 weeks they made Brookfield
Butter over 50 percent better known in 28 major cities."
"That's a bold comment, but now let's see some
figures on a proven check-up of directly traceable sales as
made by that pair of supersalesman, Freeman G-osden and
Charles J.Correll, better known as "Amos ' n' Andy" - so much
better in fact that I could not recall their real names.
"When I phoned NBC neither could the man who answer¬
ed the 'phone in the press department; he had to look them up.
"But you can bet the Pepsodent people know those
names, know them with a touch of awe and reverence, for they
sold 2,000,000 tubes of tooth paste through a single brief
campaign. Before and after the darky dialogue sketch, the
announcer said that any listener sending in two cartons in
which Pepsodent toothpaste was packed would be given a free
bottle of mouth wash. The announcement was containued for
a limited time or until 1,000,000 bottles of mouth wash had been
requested. These requests were accompanied by cartons re¬
presenting $500,000 worth of tooth paste.
"In a recent magazine article a writer kids radio
advertisers who say that your purchases of a product make
their programs possible, urge you to continue buying. The
effectiveness of such appeal was demonstrated by another
Pepsodent Show, The Rise of the Goldbergs.
"You may recall when an announcement was once made
during their program to the effect that "Although this pro¬
gram is presented for your entertainment, we cannot continue
it unless it is malting new users for Pepsodent Tooth Paste
and antiseptic. If you want it continued, write us a note
on the back of a Pepsodent carton. " As an added inducement
a bathroom t .mbler was offered to all carton senders.
(fO BE CONTINUED)
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8/3/34
PRALL, COMMUNICATIONS COMMISSIONER DESIGNATE IN AUTO ACCIDENT
Considerable concern was felt in Communications 1
circles as to the extent of the injuries of Representative
Anning S.Prall, of New York, who along with Senator Robert
F. Wagner of New York, was injured when their car was crowded
off the road by a truck at Westport, N.Y. They were en-
route to the Seigneur Club at Lucerne, Quebec.
Dr. H.J.Harriss attending them said, the day
following the accident: "Both men are comfortable and cheer¬
ful and have recovered from the shock that accompanied their
injuries. They will remain here for the next few days, after
which Representative Prall will be sent to a New York hospital
for treatment of the double compound fracture of the lower
right leg. After a few days rest I anticipate that Senator
Wagner will be able to leave of his own accord with complete
discharge. "
Senator Wagner, driving, in attempting to pass one
truck on a mountain curve turned off the highway to avoid hitting
another truck coming from an opposite direction. His car
dropped 20 feet but didn't turn over.
Representative Prall, who is 64 years old, upon his
defeat for renomination .was appointed to the Federal Radio
Commission by President Roosevelt but never took his seat.
The assumption is that Mr. Prall, a personal friend of the
President will be appointed to the Federal Communications
Commission to succeed Commissioner Hampson Gary when his
(Prall1 s) term in Congress expires January 1st. Owing to the
fact that Representative Prall was a member of the House at
the time the Communications Act was passed, he cannot serve
on the Commission during his present term of Congress.
XXXXXXXX
NORMAN . BAKER TRIES TO COMEBACK
Norman Baker of Iowa whose station KTNT was closed
down upon complaint of medical authorities and charged by the
Radio Commission as being "inimical to public health", filed
an application for a new station at Muscatine with 5 K.W,
power on 1170 . kilocycles frequency, limited time.
The application was returned to Baker by the Communi¬
cations Commission as not being properly filled out.
"The State of Iowa is overquota and even if it weren't
Baker wouldn't have a chance to get another station. Since the
State is overquota he must now apply for the facilities of some
Iowa station. " a Commission official observed. "Norman is just
taking a flier with the new crowd in the hope of coming back, but
it will not do him any good as the older ones around here know
him. Also there is the record of his previous case. "
XXXXXXXX
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Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C,
* u
CONFIDENTIAL — Not for Publication
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INDEX TO ISSUE OF AUGUST 7, 1934.
Page
Broadcasting Division Plans Little Besides Survey . 2
Judge Sykes Explains Communications Act . 3
Washington Plans Two More ''Voice of Safety" Cars . 3
Do Radio Stars Earn Their Pay ?( Continued from last issue.) 5
Finch Talked of as Telegraph Div Director . 7
Boston and Providence Cases Set for Hearing . 7
Radio Making Progresses in South Africa . . 7
Admiral McNamee to Open Mackay Washington Service . 8
Commodore Stanley Hubbard Escorts President Roosevelt . . 8
Sarnoff Praises Marconi's Micro-Wave Harbor Beacon . 8
Picture People Join Broadcasters in Fight on Composers . . 9
Broadcasting Division Acts Upon Numerous Applications.... 9
Business Letter Notes . 12
No. 747.
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August 7, 1934.
BROADCASTING DIVISION PLANS LITTLE BESIDES SURVEY
Hampson Gary, chairman of the radio division of the
Communications Commission, sa.id that aside from the routine
activities carried on by the Radio Commission the radio divi¬
sion of the new Commission, which amounts to about the same
as the old Commission, has no radical plans in mind at the
present time. Judging from what Mr. Gary said the division
will confine itself principally to "keeping on, keeping on"
until it receives further instructions from Congress when
that body meets next January.
The principal new work of the Commission, Mr. Gary
said, will be the survey in preparation for the recommenda¬
tion to Congress as to whether or not the''legislat'ive ' body
shall stipulate a fixed percentage of broadcasting facilities
to educational, religious and other non-profit making pro¬
grams or radio stations.
"I find my work interesting and indeed fascinating",
said Mr. Gary. "It is my intention to make a complete survey
of the broadcasting field with the hope of being able to
suggest ways and means to iron out some of the rough spots
now present. My first concern, of course, under the law,
and following my own impulses, is for the listeners.
"My colleagues are a unit on this subject and it
is most gratifying to note their enthusiastic cooperation
in all matters tending to improve the service to listeners
throughout the country. "
While viewing the broadcast structure from a national
viewpoint as paramount, Mr. Gary declared there are problems
confronting listeners in his home state of Texas which do not
prevail elsewhere because of the vast territory embraced
within the borders of that state.
"The quota system heretofore applied", he said, "works
an injustice to those living in Texas and in some of the other
sections of our great country. People living in sparsely
settled sections of the country are the ones to whom radio
should prove the greatest boon and blessing. Residents of
congested sections have all sorts of other diversions and
entertainment and means for keeping posted on the affairs
of the nation and the world. Those living in the rural
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8/7/34
sections depend largely on radio to keep them in direct touch
with the outside world. "
Mr. G-ary said he intends to make a careful study
of synchronization as it may offer possibilities for the
solution of some problems confronting rural listeners in
Texas and elsewhere. He is watching with keen interest
experiments now being conducted whereby KPJ.D at Dallas, and
WTIC, Hartford, Conn. , operate full time simultaneously on the
same frequency - 1040 kc, and other experiments being conducted
on the same channels by stations operating simultaneously
part time.
He pointed out several stations are also being
operated successfully on a. common frequency, full time, by
means of matched crystals.
"Engineers tell me", he said, "that the real tests
of synchronization will come this winter when propagation of
signals will be at its best. It is my hope that these tests
will prove satisfactory, for then we can find room for more
stations a.nd can provide full time operation for other stations
now obliged to split time, thus providing radio programs to
many communities now served only a few hours each day.
XXXXXXXX
JUDGE SYKES EXPLAINS COMMUNICATIONS ACT
Judge Eugene 0. Sykes, chairman of the Federal
Communications Commission discussed briefly some of the most
important provisions of the Communications Act in a radio
address over the Columbia Broadcasting System last Friday
night. Judge Sykes spoke through Station WJSV in Washington.
The Qhariman expressed no opinions with regard to
the merits of the Act, but merely explained for the benefit
of the average listener what the Communications Act pro¬
vided for.
XXXXXXXX
WASHINGTON PLANS TWO MORE "VOICE OF SAFETY" CARS
The "Voice of Safety" police automobile, which began
cruising the streets with a loud-speaker warning to careless
motorists and pedestrians, has proved efficient enough to
warrant two additional m? chines, in the opinion of Police
Chief E.W. Brown.
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The regulation patrol cars of the Traffic Bureau are
to be equipped in the near future with loud speakers. These
will lecture on the enforcement of traffic regulations while
proceeding about routine police duty.
Sergt Walter H. Thomas, assistant traffic director
of the safety campaign, estimated that the observance drive
now on in the Capital was saving the motoring public between
$150 and $800 a day in fines.
Two more vocal cars, Sergt Thomas said, should cut
down the traffic penalty bill to reasonable proportions. The
Police Department would be happy to deprive the District of
this source of revenue if it would make Washington’s well-known
reckless drivers ’’safety conscious," Sergt Thdmas declared.
There were some amusing incidents when the "Voice of
Safety" ( an automobile painted white equipped with a loud
speaker and manned by two Washington traffic policemen)
criiised about the City.
An ioe cream vendor , pushing a two- wheeled cart in
quest of business, was walking blissfully along in the street
some yards from the burb. "The ice cream man will please
keep over to the right.’" the Voice announced in stentorian
tones. The ice cream man moved over, stopped and scratched
his forehead. It was obvious he had never heard about the
Voice of Safety until that moment, and he was perplexed.
"Stop back of the cross walk while waiting for the green light,"
the Voice warned a truck driver who had edged across the white
line. The driver grinned sheepishly and made a gesture of
compliance.
"Boy, get up on the sidewalk.’" - - this to a dirty
faced urchin on Pennsylvania Avenue. The boy got up, his eyes
wide as he looked around to make sure the remarks were not
directed to some one else.
A pedestrian was walking across the avenue at Sixth
Street, He was brought to an abrupt halt by the voice "You’re
walking against the red light - that's very dangerous," the man
was told. He laughed good-naturedly and waved his acknowledg¬
ment.
"Come on, Virginia, move along there," the voice said
referring to a car with a Virginia license. "You’re parked
double - move on please." "Don't pa.rk abreast, please. " The
lady from Virginia -please don't park there - thank you."
-4-
8/7/34
No one seemed, offended, all seemed to take the ad¬
monishing in good grace - but nearly every one was embarrassed.
"It's working fine, so far," a municipal officer
remarked. "But wait until the Voice of Safety accosts the wife
of some congressman or other official - I fear the worst.’"
XXXXXXXX
DO RADIO STARS EARN THEIR PAY
( Continued)
Amos and Andy offered to., swop photos of themselves
for Pepsodent cartons and got 75,000 takers in a week, Robert
Eichberg writed in "Radio Stars".
"Add it up", Mr. Eichberg continues, "right here we
have a total of 2,895,000 cartons, not letters, but cartons,
each representing a 25-cent sale, sent in by listeners replying
to only three ideas. Do a little multiplication and then
decide whether or not the Pepsodent programs earn their pay.
"Then take the Kraft Musical Revue which featured A1
Jolson and Paul Whiteman in a presentation running for 2 hours
in New York and 1 hour in New England. We are told that each
of these stars rates $5,000 a show and, with the station time
and all, it cost Miracle Whip Salad Dressing a pretty penny.
Well, was it worth the money?
"Let John H. Platt, Kraft's advertising manager tell
you, as he told Sales Management, "Inside of 3 weeks from the
first announcement, 85 percent of the distributors in the terri¬
tory stocked Miracle Whip. In 6 weeks it was in first place in
sales throughout New York and New England." True, newspapers
and other media were used in this campaign, but radio gets a
big share of the credit.
"Ireene Wicker, - that's not a mistake in her first
name, a numerologist told her to spell it that way - is one of
radio's best saleswomen. As "Kellogg's Singing Lady", heard
over the blue network late every afternoon except Saturday and
Sunday, she has been directly responsible for 38 women getting
steady jobs. No Ireene didn't hire them, but their work is to
take care of her fan mail, and it keeps them mighty busy. You
see, the Singing Lady offered to send her song book to people
mailing her tops from Kellogg packages, and about 14,000 a day
take advantage of the offer. So Ireene is responsible for
nearly 100,000 sales of Kellogg products every week.
-5-
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"Cities Service spends about $300,000 a year on
broadcasting and has been on NBC over 7 years. Its program
features Jessica Dragonette. Now $300,000 is a lot of money,
but through radio broadcast advertising in one month they sold
over 20,000 shares of common stock and one order for 50,000
barrels of oil. Down in Dallas, Tex. , a salesman closed a
contract for 9,000 gallons of Koolmotor gasoline monthly, as
a result of radio; these are only a few examples. So, you see,
they get their $300,000 back.
"The Carnation Milk Co. put on a contest for a
slogan during their weekly half hour over 37 NBC stations, and,
during the 13 weeks the contest lasted, received 659,270 slogans,
most of them written on labels taken from the cans.
"Graham-Paige motor cars once put the Detroit Sym¬
phony Orchestra on the CBS chain in a series of weekly half-
hours. A copy of a poem by Edgar A. Guest was offered anyone
visiting the showrooms. About 50,000 people a week took ad¬
vantage of the offer, and Graham-Paige had to increase their
factory production schedules about 50 percent to meet the re¬
sulting demand for their cars.
"Walter Winchell clicked big on the same network when
he broadcast for La Gerardine, a hair lotion selling for one and
two dollars a bottle in competition with other products, many at
10 cents. Before Winchell took the air "Gerry" wasn’t sold in
drug stores. When he finished not only did they have complete
distribution, but sales had increased 250 percent before the
broadcast had been running 2 months. He's doing another grand
job on Jergen’s Lotion right now.
"The networks always point with pride to sponsors
who have been on the air continuously over a long period of time.
"Would they", station officials ask, "have stayed on so long if
their programs didn't pay?" To which we can only answer, "No
one can fathom the mind of a radio sponsor. Let's see some
figures. "
"In response they trotted out a handsome set of
statistics on the A. and P. Gypsies, whom Harry Horlick had on
NBC continuously since 1924, save for a 2-months' vacation in
1927. They've played 66 solid months on the air since 1927,
which is a longer run than even Abie's Irish Rose. They're
credited with increasing the chain store's sales 173 percent.
"And now to take a peek at inexpensive broadcast. Ida
Bailey Allen, as you know, broadcasts at a. time of day when
charges for time are low. Likewise she appears under the joint
sponsorship of several trade-marked brands, which further reduces
the cost for each of her sponsors.
- 6-
>1
8/7/34.
"One of them who makes a product retailing for 15 cents,
had 7,000 handy little kitchen appliances left over from a former
premium stunt and asked Mrs Allen to give them away over the air.
So she offered one to anybody sending in 10 flaps torn from the
product, thus proving actual sales of $1.50 for each request.
Suddenly the advertiser found that all the appliances had been
given away. Still package tops poured in, until more than
200,000 had been received. The cash return, as proven by pack¬
age tops, was $304,500 from just that two-line announcement."
XXXXXXXX
FINCH TALKED OF AS TELEGRAPH DIVISION DIRECTOR
W.H.G. Finch, head of the International News
(Hearst) Service radio department is being prominently
mentioned as the Director of the Telegraph Division of the
Federal Communications Commission.
XXXXXXXX
BOSTON AND PROVIDENCE CASES SET FOR HEARING
Applications of stations in Boston and Providence
have been set for hearings by the Broadcasting Division
of the Radio Commission. The dates will be announced later.
Station WHDH, Matheson Radio Co. , of Boston
has applied for a modification of license to increase hours
of operation from daytime to unlimited time using 500 watts
night, 1,000 watts daytime until sunset at Denver. This
will be heard by the entire Commission, along with an appli¬
cation by WNAC, Boston.
WJAR, The Outlet Co. , Providence, has applied
for modification of license to incres.se power from 250 watts
night, 500 watts daytime, to 1,000 watts day and night.
XXXX XXXX
RADIO MAKING PROGRESSES IN SOUTH AFRICA
When the Graham town radio station is opened some time
this year in the Union of South Africa, that country will have
complete radio coverage with satisfactory reception, according
to Acting Commercial Attache E.B. Lawson, Johannesburg, in a
report to the Commerce Department.
According to current estimates, the report states,
there will be over 100,000 licensed receiving sets inuthe Union
by February of next year.
XXXXXXXX
-7- .
4
ADMIRAL McNAMEE TO OPEN MCKAY WASHINGTON SERVICE
Admiral Luke McNamee, president of the Mackay
Radio and Telegraph Company of California will inaugurate
the first commercial radio telegraph service between
Washington and other cities, Wednesday August 8.
That they may witness the opening and meet
Admiral McNamee, invitations to a luncheon at the Mayflower
have been extended to Communications officials ahd others* of
prominence at the Capital. Arrangements for the luncheon
are in the hands of Frank C. Page, of New York, vice president
of the International Telephone and Telegraph Company,
XXXXXXXX
COMMODORE STANLEY HUBBARD ESCORTS PRESIDENT ROOSEVELT
Several prominently identified with radio have
been among those to extend a welcome to President Roosevelt on
his trip from the West Ooafet. Senator Dill greeted him at
Spokane and many are of the opinion that the President may
have urged the Washington Senator to reconsider and to run
again, as the latter has until Saturday (August 11) to de¬
finitely file his intentions.
Stanley E. Hubbard vice president and general
manager of KSTP, St Paul noted yachtman in those quarters,
will act as commodore of the flotilla of 25 yachts which will
escort President Roosevelt from Wabasha(Minn. ) to Winono,
Wednesday afternoon, '(August 8.)
XXXXXXXX
SARNOFF PRAISES MARCONI* S MICROWAVE HARBOR BEACON
Returning from two months abroad David Sarnoff presi¬
dent of the Radio Corporation of America said he had a conference
in London with Senator Guglielmo Marconi end learned at first
hand of the inventor's plan to pilot ships into port and their
berths in the docks by "the use of short wave, or centimeter
wave lengths and said that he regarded the invention as highly
important for the shipping world.
"The device might readily," he said," be used, when
perfected, on all lightships outside of New York or any other
port to guide vessels safely into the harbor in fog or heavy
snowstorms. "
"Germany, Great Britain, Holland and France are all
doing research work in an effort to perfect television," Mr.
Sarnoff added, "but I did not see anything abroad which is
superior to developments along the same lines in the United
States." He said that the British has appointed a commission
of experts to study the subject.
-8-
Mr. Sarnoff added that business had much improved
in Great Britian but was generally dull in France.
XXXXXXXX
PICTURE PEOPLE JOIN BROADCASTERS IN FIGHT ON COMPOSERS
As a part of their opposition, the American Society
of Composers new seat tax scale the film people have requested
pbniilsslan of the National Association of Broadcasters to
intervene in a suit that the NAB has pending against the
Society. A letter requesting authority to join radio as a
co-litigant in its test cast was addressed to Newton D. Baker
chief counsel for the NAB. This action was filed last year
in behalf of WIP, Philadelphia, with the New York Federal
Court, ' It charged the Society with being a monopoly
and asked that the performing rights combine be ordered
dissolved.
It is also reported that the picture interests
will endeavor to subject the composers to a Congressional
investigation in the hopes of having the copyright laws
revised.
X X X XX X X X
BROADCASTING DIVISION ACTS UPON NUMEROUS APPLICATIONS
The Broadcasting Division of the F.C.C. took the
following action at its meeting Tuesday afternoon( August 7. )
Albert S. Moffat, Lowell , Mass granted CP to move transmitter and
studio from Lexington to Lowell, Mass; 1370 kc, 100 w night
250 w. day ; specif ied hours. WLEY
WBAA Purdue University , W„ Layfayette , Ind. suspended grant for
Mod. of Lie to .change frequency from 1400 to 800 kc and
application setnfor hearing because of protest of WILL, Urbana,Ill.
WDAF Kansas City Star Co. , Kansas City, Mo® denied petition to
intervene in the proceedings with refernce to .the application
of WHB Broadcasting Co. , Kansas City, for special auth. to operate
on 1120 kc, 500 w. from LS to midnight at Kansas City.
Also WBAP Carter Publications Fort Worth, Texas, granted
petition for regular renewal of license. WBHS Radio Sta,
Huntsville, Ala. Granted regular renewal of Lie to continue ..
operation at Huntsville, Ala. and consent to Vol. Assign of Lie.
to Virgil V. Evans. Appl to move sta to Greenwood S C has been
withdrawn, WOL American Broadcasting Co. Wasnington, D.C.
denied request for hearing on protest against grant made June 15,
1934, of an increase in day power from 500 w to 1 KW to WRC,
Washington, on the ground that the allegations im the protest are
"vague" problematical and conkectural and are not such as to
present substantial interest."
-9-
Also WHDF The Upper Mich Broadcasting Co. Calumet,
Michigan, granted CP to move transmitter from Calumet to outside
of Larium,Mich, and make changes in equipment. WK6Z , Karl L.
Ashbacker, Muckegon, Mich, granted Mod of CP to change location
of station locally in Muskegon and extend commencement date to
Aug 8.
Also WCAL St. Olaf College, North&ield,MInn„ granted
license 1250 kc, 1 KW night, 2i KW day ; specif ied hours. KWYO
H.E. Carroll d/b as Big Horn Broadcasring Co. Sheridan, Wyo.
granted license; 1370 kc 100 watts, unlimited. WTRC The Truth
Publishing Co. Inc. Elkhart, Ind. granted Vol Assign to Lie to
Truth Radio Corp. KMBC Midland Broadcasting Co. Kansas City
Mo. granted license for auth to change type of equipment auth
by CP. WDG-Y Dr. Geo. W. Young, Minneapolis, Minn granted license
covering new eqpt and increase inipower from 1KW to 1KW night
2-| KW day; 1180 kc ltd time. WMAL Nat'l Broadcasting Co. Wash
ington, D.C. granted license for auxiliary purposes 630 kc, 250
watts night 500 w. day.
Also KWKC Wilson Duncan Broadcasting Co. , Kansas City, Mo
to operate without approved freq. monitor for a period not to
exceed 15 days. WKRC WKRC,Inc Cincinnati, 0 Spec Temp. Auth.
extended for period Aug 3 to 16 incl. to operate without an
approved freq. monitor. WHBC Edward P. Graham, Canton, 0. to
operate simultaneously with station WNBO from 9 to 11 pm EST
Aug 13, and 9 pm to 12 pm EST Aug 14; also granted spec temp
auth to operate from 12 midnight to 6 aiji EST Aug 15. KLS
S-.W. Warner & E.N. ’Warner c/o ’Warner Bros. Oakland, Cal. Mod
of Lie. to increase hours of operation from daytime to unltd.
WBZA Westinghouse Elec & Mfg Co. Boston, Mass. Spec Exp Auth to
transmit dissimilar programs over 'WBZA daytime up to 1 hour
before sunset, when synchronized with WBZ, for period of 30 days.
The following miscellaneous cases were acted upon;
New Seymour Turner, Portabie(Phila,Pa. ) granted experi¬
mental Visual Broadcasting CP to Nov 1,1934 65000 to 75000 kc.
5 watts. WATR Harold Thomas, Waterbury, Conn. denied Spec Temp
Auth to operate on 1200 kc, 100 watts, unltd. time until station
WORC in required to revert to its regularly licensed freq. of
1200 kc. WLTH Voice of Brooklyn, Brooklyn, N.Y. Mod of
Lie. to operate on 1400 kc, 500 watts, WLTH 3/4 time, WBBC 1/4
time, hertofore set for hearing, was dismissed at request of
applicants.
New Joseph Pappalardo, Lawrence, Mass. CP for new station
tomoperate on 1120 kc, 100 wats, inltd time. hertofore designated for
hearing was dismissed at applicant's request. New American
Radio Productions Inst Inc Brooklyn, N.Y. CP, 1400
kc. 500 w unltd time(Fac of WBBC, WLTH, Ward and WVFW) heretofore
designated for hearing, was denied because applicants failed to
enter appearance within time allowed.
-10-
•; ; a , < r-Hi
NBC NEW AND RENEWAL ACCOUNTS
NEW - Parmalee System Inc. (Taxi Service ) 'World
Wide Advertising Corp, starts July 30,1934, time Mon, Wed, Fri
6; 15 to 6:30 PM EDST; WEAF only- Program "The Parmelee Harmony Taxi
Drivers" -Laddt Trio and White. RENEWAL - The F.W. Fitch Co
Fitch's Shampoo) Des Moines, Iowa, Agency L.W. Ramsey Co., Davenport
Iowa starts Sept 9,1934. Sundays 7:45 -8:00 PM . 11:00-11:15 PM
Network -7; 45-8 WEAF WTIC WJAR WTAG WCSH WLIT WFBR WRC WGY WBEN
WCAE WTAM WWJ WSAI WMAQ K3D WOC WHO WOW WKBF 11:00 - WTMJ KSTP
WIBA WEBC WDAY KFYR WKY WBAP KPRC WOAI KTBS KOA KDYL KGO KFI
KOMO KHQ, WDAF. -Program" Irene Besley."'
CHANGE Effective July 24 and thereafter the
PROCTOR AND GAMBLE CO. Program" Ivory Stamp Club with Tim
Healy" will be heard on Tuesday, Thurs Sat at 7:00-7:15 PM
instead of 6:30- 6:45.
NEW Proctor & ^amble Co (Draft) Cincinnati Ohio. Agency
H.W.Kastor & Sons, 360 N Mich Ave Chicago, Ill starts Aug
14, 1934. Time Tues, Wed, Thurs 3:15- 3:30 PM; 3:30 -3:45 PM
starting Aug 2. Network WLW TOO WOW WDAF 'WIBA KSTP Program
Rainbor Court "-dramatic show with Irna Phillips, Ireene and
Walter ’Wicker and Lucy Gilman.
NEW Bonwit Teller & Co (Woman's Wear) 721 -Fifth Ave
Agency Cecil Warwick & Cecil, Inc. New York, Starts August
3 only, Friday 7:00-7:15 PM EDST WJZ only. Paris Style Openings
by May Birkhead from Paris, France.
NEW Ironized Yeast Co. Atlanta, Ga. starts Sept 11,1934.
Tues, Thurs and Sat 7:30-7:45 PM -12 stations-originating WABG
'Whispering Jack Smith and His Orchestra- Agency Ruthrauff & Ryan
Inc. (Columbia Broadcasting Company) Also NEW Brillo Mfg Co.
Brooklyn, N1Y. Oct 7, 1934 Sunday 12:30 -12:45 PM 24 stations
Program "Tito Guizar's Midday Serenade".
NEW United American Bosch Corp (Radios, automobiles
horns and magnetos, ets?) Springfield, Mass Agency E.T. Howard Co
Inc., Starts August 19, 1934. Sundays 5:30-5:45 PM EDST
Network WJZ WBZ WBZA WBAL WMAL WSYR WHAM KDKA WGAR WJR WCKY
WENR KWK KWCR KSO KOIL KREN KSTP WKBF WTMJ WIBA WEBC WDAY
KFYR WSM KWCR ’TOC WSB WAP I WJDX WSMB KOA KDYL KGO KFI KGW KOMO
KHG. Program - "Radio Explorers Club. Historical talks by
explorers from the iMuseum of Natural History with incidental
music.
NEW Wheatena Corp. Rahway, N.J Agency McKee & Albright
Starts August 27, 1934. Mon to Fri incl. 6:45 to 7:00 PM EDST
Network WEAF WEE I WTIC ’WJAR WTAG WCSH WFI WLIT WFBR WRC WGY WBEN
WCAE WTAM WWJ WLW Program "Billy Batchelor"-dramatic sketch
-11-
8/7/34 .
:: BUSINESS LETTER NOTES
William S. Paley, president of Columbia, is due
back from the West Coast this week, and Edward Klauber,
vice president who has been sitting on the lid in Mr.
Paley* s absence will start on his vacation.
Mr, Klauber was one of those who attended the
recent dinner given to the new Communications Commissioners
in Washington.
Benedict Cimbel, Jr, , president of WIP, Philadelphia
was a visitor at the New York headquarters of the American
Broadcasting System to discuss with network officials details
regarding programs and the recent affiliation of his station
with the chain.
Station WHBM, Green Bay, Wis. , has filed an appeal
from a decision of the old Federal Radio Commission denying
WHBM the right to change from 1200 to 1360 kilocycles and
increasing its power from 100 to 1,000 watts. WHBM is seeking
the facilities of WGES, Chicago and WIND, Gary,Ind.
An inconspicious carbon-type microphone from the early
days of commercial broadcasting is a radio relic in the private
office of Le Roy Mark, president of WOL, member station of the
American Broadcasting System in Washington, D. C. The instrument
was used in 1926 for his first broadcast from the White House
by Calvin Coolidge, who was inducted into office as President
of the United States eleven years ago.
Speaking at a symposium on ballroom dancing,
Samuel L. Rothafel, **Roxy,f , announced that in the near future
he would return to the stage work that has made his name
famous.
"Roxy" will be heard over a Columbia network at
an early date sponsored by Fletcher's " Castoria. n
xxxxxxxx
-12-
♦
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
C O N F I D E N T I A L — Not lor Publication
INDEX TO ISSUE OF AUGUST
iiii.i JtAL UUO&DCMTIIG C\, i
VIC. Pr.clGJOcliT AtlD GENERAL AT7C-
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10,1934.
y,
Page
Mackay Radio Links Capital with Eleven Cities . 2
Baking Program Attracts Local Sponsors . 4
Powerful Group Moving to Protect Clear Channels . 5
New Broadcasting Director see no general reallocation.
New All-current Receiver in Germany .
Trade Commissioner Warns Non-responsive Radio ;advertisers.
Prall and Wagner Still Laid up .
Commission Issues New Radio Call List . 9
Good Demand in Switzerland for Radio Sets . 9
Business Letter Notes . 10
Commission Meets Monday to Discuss Appointments . 11
Federal Communications Commission applications . . . 11
No. 748.
£> £> CO CO
August 10,1934.
MAC KAY RADIO LINKS CAPITAL WITH ELEVEN CITIES
Communications Commissioners, Army and Navy and
other prominent government officialsand newspaper correspo-
dents, witnessed, at a luncheon, the cermonies of the opening
of Washington * s first commercial radio inter-city telegraph
service, linking the National Capital by Mackay Radio with
New York, Boston, Chicago, New Orleans , Seattle, Tacoma, Portland,
San Francisco, Oakland, Los Angeles and San Diego. Kansas
City and Atlanta will be next.
A sending and receiving station was installed in
the room. Messages of greeting were sent to Col. Sosthenes
Behn, President of the International Telephone and Telegraph
Corporation, who'..- was at St Jean de Luz, France and had to
be reached from Madrid by telephone, Col W. F.Repp, vice
president in charge of the Argentine System, and Captain
Schuyler Cummings of the S S. Manhattan a day out of New York.
Frank C.Page, vice president of the International
Telephone and Telegraph, who Admiral Luke McNamee, president
of Mackay Radio later characterized as "a prince of good
fellows" in announcing that the messages had been sent caused
a laugh by saying, "I’ve got all the replies here in my pocket
in case there is a delay in any of them coming in. "
The first to be heard from was Captain Cummings
of the Manhattan and the others came in shortly thereafter.
Mr. Page declined to send a message from one of the guests to
Senator Huey Long, asking Huey what the heck he was trying to
do with the militia down in New Orleans. However, Mr. Page
accepted a radiogram from Judge E. 0. Sykes, chairman of the
Federal Communications Commission to Admiral Byrd, but added,
"I won't promise time of delivery on that."
Mr. Page, who acted as toastmaster, said that
the United States was the only country of any size which
hadn’t developed inter-city commercial radio service.
Admiral McNamee, the only speaker, said that the
Administration was to be congratulated upon creating a
Communications Commission and that it was the first constructive
thing which had ever been done by this country for the regu¬
lation of communications. Remarking that he was new to the
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business the Admiral told a story about a dog owned by a
ventriloquist.
The vaudeville actor was stranded in a New England
village and as a last resort decided to sell the dog. As he
passed the country store he said addressing the dog, "It's
pretty hot to-day." "Not so hot", the dog replied. The
storekeeper exclaimed in amazement, "Can that dog talk?"
"Sure" the actor r eplied. "Want to sell him?" the storekeeper
asked. "I-'m so hard up, I am afraid I'll have to." "How
much do you want for him?" "Five hundred dollars." the
actor stated.
This flabbergasted the storekeeper but they finally
agreed upon $200. After ramsacking his safe the storekeeper
came out with $100 in bills and silver and gave his note for
the other hundred.
"Whereupon" Admiral McNamee concluded, the dog
said, "I won't say a damned word until he pays that note."
The sending station for the Mackay Washington
radio link is at Muirkirk, Md. , and the receving station
at Saysville, L.I. The Washington receiving station is
near Rockville, Md.
Rather than an overcrowded head table at the Mackay
Ixuioheon at the Mayflower in Washington there was an informal
seating arrangement at small tables about the room with
Communications Commissioners and others so seated as to give
each table a distinguished guest or two. This also avoided
the embarrassment of trying to seat guests in their relative
order at a head table. Seating arrangements were well
carried out by Thomas P.Dowd, Washington Superintendent of
the Postal, and favorably known to all Washington Correspondents.
Tfrose who attended the luncheon were:
E. 0. Sykes, Chairman, Federal Communications Commission.
Irvin Stewart, Commissioner, Federal Communications Com.
Hampson Gary , Commissioner , Federal Communications Com.
Thad H. Brovm, Commissioner, Federal Communications Com.
Albert E. Stephan, Interstate Commerce Commission
Edwin L. White, Federal Communications Com.
Herbert L. Pettey, Secretary , Federal Communications Com.
William N. Krebs, Federal Communications Com.
Norman S. Case , Commissioner, Federal Communications Com.
George Henry Payne /Commissioner , Federal Communications
Gerald C. Gross, Federal Communications Com
John B. Reynolds , Federal Communications Com
C. B. Jolliffe , Chief Engineer, Fed Communications Com.
Ellery W. Stone , Operating V.P. Mackay Radio
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Dr. J. H. Dellinger, Bureau of Standards
David A. Salmon, State Department
Lieut Comdr G. W. Johnson, Naval Communications U.S.N,
J.L.Koehl, Agriculture Department
Lieut Comdr E.M. Webster, U. S. Coast Guard
Capt Townsend, War Department, Signal Corps.
Leighton H. Peebles, Deputy Administrator NRA
Clarence H.Osthagen, Asst Deputy Administrator NRA
Harry C. Butcher, Columbia Broadcasting
Hon. Joseph E. Davies
E.B. Lockett, International News Service
Robert D.Heinl, Heinl News Service
Paul Wooten, New Orleans Times-Picayune
Arthur Hachten, San Francisco Chronicle
Carter Field, Boston Herald
Oliver McKee, Jr Boston Evening Transcript
G.L. Vidal, Director, Bureau of Aeronautics, Dept of Com.
C.H. Butman, Radio Consultant
B.M. McKelway, Washington Star
E.K. Jett, Federal Communications Commission
Ralph C. Mulligan, Boston Traveler
Martin Codel, Broadcasting Magazine
Lynne M. Lamm, Daily Metal Trade
P.0. Coffin, V.P. Chesapeake & Potomac Telephone Co.
Paul Spearman, Gen'l Counsel, Fed Communications Commission
Lieut Comdr Wheeler, Naval Communications U.S.N.
William Hard, McNaught Syndicate
Thomas P.Dowd, Supt. Postal Telegraph-Cable Co. Washington
Col. A. H. Griswold, V. P. International Tel & Tel Corp.
Haraden Pratt, V.P. Mackay Radio
TIE 7 Nivison, V.P. Mackay Radio
t.J. Girard, Washington Manager, Mackay Radio
XXXXXXXX
BAKING PROGRAM ATTRACTS LOCAL SPONSORS
An unusual idea in chain broadcasts in which local
sponsors are obtained for each station releasing the program
was introduced nationally by the Los Angeles office of Irwin
Wasey & Co. in a Columbia broadcast recently. The program is
known in Los Angeles as the Franco-American Baking Company's
Hi- Jinks, a local favorite for three years.
The one-time national hook-up was arranged to intro¬
duce it in other localities. When local baker tie-ups are
arranged in sufficient number it will become a regular national
feature, it was stated. Meanwhile the program is going over
the Calif ornia-Columbia-Don Lee network each Sunday night, with
local bakeries sponsoring it in each city.
The net-work idea necessitated a change in the origina-
tingfstation, and fairly large newspaper space was taken Sunday
morning to announce the switch from KFWB to KHJ (Columbia)
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POWERFUL GROUP MOVING TO PROTECT CLEAR CHANNELS
Setting forth that the clear channel system is in
imminent danger of a total or partial break-down with a
corresponding destruction of rural broadcast service and a
deprivation of large areas and a substantial portion of the
country’s population of broadcast reception thirteen leading
clear channel stations have petitioned the Federal Communica¬
tions Commission to make a technical study and investigation
of the entire clear channel situation. Furthermore, this group
recommended that pending the taking of such action by the
Commission, no new or further duplicate nighttime operation
be permitted on clear channels on which duplicate nighttime
operation is not already authorized and that no new or further
duplicate daytime operation be permitted except under and
safely in accordance with the mileage frequency separation
tables recommended by the Commission’s Engineering Division
Those petitioning the Communications Commission
requested an opportunity for an oral presentation of their
proposals before the Broadcast Division of the Commission
They were: WSM, Nashville; KGI, Los Angeles;
WJR, Detroit; WLW, Cincinnati; WOAI, San Antonio; V/SB, Atlanta;
WFAA, Dallas; WBAP, Fort Worth,, all represented by Louis G.
Caldwell. WHAS, Louisville represented by Swagar Sherley,
KNX, Los Angeles represented by Paul M. Segal. WHAM, Rochester,
N.Y. represented by Bethuel M. Webster and Paul M. Segal, WLS,
Chicago represented by D.M. Patrick.
The thirteen clear channel stations ask that the
investigation be carried on for a period of a year under the
supervision of a radio engineer of recognized ability, integrity
and independence and preferably a member of the Commission's
technical staff, and /with the cooperation of all broadcasters
and radio laboratories willing to give such cooperation, with
particular reference to
(a) the extent to which the people of the United
States, and particularly those located in rural
areas, are dependent upon clear channel stations for
broadcast receptions, and so far as possible, a
circulation of the areas and the population which
are thus dependent for any service at all, and for a
choice of more than one program:
(b) the extent to which such service should be
protected from interference due to the simultaneous
operation of other stations on the same channels,
including the fixing of standards as to what
service is deserving of such protection.
-5-
8/10/34.
the designation of the location and boundaries
of regions, if any, between which such simul¬
taneous operation is possible at nighttime with¬
out violation of such standards, and the conditions
as to power and otherwise under which such simul¬
taneous operation is permissible, and the conditions
as to power and mileage separation under which
such simultaneous operation is permissible in the
daytime;
Tiie protesting stations declare that with a total
of 607 broadcast stations in operation on January 1,1932,
the Federal Radio Commission reported to the United States
Senate that only 46 per cent of the total area of the con¬
tinental United States had consisteht radio reception at
night (56.2 per cent day time) , corresponding to 89.6 per
cent of the total polulation (94 per cent daytime).
A large portion of the area and population re¬
ceiving consistent reception is served only by clear channel
stations while the remaining area and polulation received
an intermittent service received only from clear channel
stations.
Certain developments have led to a widespread
apprehension that the clear channel system is breaking
down, the thirteen stations declare, among those being,
"Since November 11,1928, the Federal Radio Commission
has from time to time, and in increasing measure, relaxed
the interpretation and the enforcement of its regulations
regarding clear channels, with the result that at present
two or more stations of substantial power are authorized
to operate simultaneously at night on 9 of the 40 clear
channels.
"Those actions of the Federal Radio Commission,
and the lack. of any clarification by the Commission of its
regulations and as to its future policy, have lead to a
steadily increasing number of applications seeking similar
privileges on the remaining clear channels. "
"Upon the conclusion of sucli study and investiga¬
tion',' the protesting stations say finally, " and the sub¬
mission of a report based thereon, the Federal Communications
Commission can then determine on the basis of accurate and
trustworthy data whether or not the clear channel system as
originally established by the Federal Radio Commission in 1928,
should be preserved or modified; and in what respects its re¬
gulations on the subject should be clarified, amended or re¬
stated; and will be in a position rigidly and uniformly to
apply and enforce such regulations as it shall find best cal¬
culated to serve public interest, convenience and necessity."
XXXXX'XXXX
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NEW BROADCASTING DIRECTOR SEES NO GENERAL REALLOCATION
There may be power increases here or wave-length
shifts there but according to Harapson Gary, chairman of the
Broadcasting Division of the Federal Communications Commission,
he hardly expects to make any widespread reallocation.
"If any changes are made they will be evolutionary
rather than revolutionary," Mr. Gary said in an interview with
Martin Codel, radio writer, broadcast last week by N.B.C.
"We intend to build solidly on what has already been
done by the former Radio Commission. There will be no
radical shifting of wave lengths or the like, so far as I
am concerned. "
Mr. Gary said that in a technical sense radio had
acquitted! itself remarkably. "We have one of the finest
systems in all the world, " the new Commissioner continued,
"We don’t want to exercise bureaucratic control and we don’t
want to dictate what manner of entertainment or discussion
shall go on the air. It is not desirable or even necessary.
We want the broadcasters to maintain, for the sake of their
own continued existence, a clean, wholesome American attitude
and balance.
"There is certain advertising being done on the
radio which is unfortunate to say' the least. I've heard
some people on the air who should not have been. I would like
to say that the radio advertisers themselves, together with the
radio stations and networks, could well develop their own
school of ethics, guiding themselves. "
Mr. Gary said, under all circumstances, the broad¬
casters have done a good job and their common sense has been a
pretty good guide so far0
It was brought out that Mr. Gary, who was our
wartime envoy to Egypt and later Minister to Switzerland,
was very definitely a personal choice of President Roosevelt's
rather than a political selection. He was an old friend of Mr.
Roosevelt, having first made the chief executive's acquaintance
back in the war days when Mr. Roosevelt was Assistant Sedretary
of the Navy and Mr. Gary was special counsel and then a solici¬
tor of the State Department. Theii? "contacts ever since have
been maintained.
XXXXXXXX
NEW ALL- CURRENT RECEIVER IN GERMANY
A German manufacturing concern has just placed on the
domestic market the first locally-produced alternating and
direct current sup erhetro dyne radio receiving set, Vice Consul
C. T. Zawadzki, Berlin, has learned.
-7-
v.iO' S,
8/10/34
This set is a four-tube model equipped with a
Hexode mixed step, an intermediate frequency step with
back-cpupling, and is provided with a power amplifier
pentode and end pentode. Tbfe hum noises from the network
are said to be no greater than on Alternating Current
receivers of a similar construction. An indirectly heated
20-volt loudspeaker tube is used for rectifying the anode
current, the report states.
The new all- current is said to have the advantage
that there is no need for switching over when changing from
one class of current, which means that the plug of the re¬
ceiver can be inserted in a Direct Current or an Alternating
Current plug box 'without the n&cessity of making an# altera¬
tions in the receiver.
XXXXXXXX
TRADE COMMISSIONER WARNS NON-RESPONSIVE RADIO ADVERTISERS
Judge Ewin Davis of the Federal Trade Commission,
author of the famous Davis amendment in the Radio Act warned
radio stations which have not "come through" with advertising
continuties that their failure may cause serious consequences.
"Most stations have co-operated to the fullest, but
those who have not and do not may expect that we shall keep
especially close watch on them, and that the Communications
Commission will likewise be kept fully informed of the
situation, "Judge Davis said.
More than 1300 stations were heard from in July,
the networks being amohg the first. The radio stations
suspected of false advertising are being handled just the
same as the newspapers and the heavy hand is apparently
about to descend upon the comparatively few broadcasters
who have not submitted their programs. Already a dozen
or so radio advertisers have been called on the carpet
but their names have not been made public.
XXXXXXXXX
PRALL AND WAGNER STILL LAID UP
Representative Anning S.Prall, of New York, supposed
to be slated for the Communications Commission January 1st,
and who was injured in an automobile accident at Westport, N.Y.
August 1st, was taken in an ambulance, accompanied by his
family physician to a hospital near his home on Staten Island.
Mr. Prall who suffered a broken leg is reported to be
-8-
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VQA r
8/10/34
convalesing satisfactorily. Senator Rob Wagner, of New York,
who was also in the smash, less seriously injured, is
nevertheless still confined to the Doctor's office at West-
port.
X X X X X X X
COMMISSION' ISSUES NEW RADIO CALL LIST
A radio station call list showing the broad¬
casting set-up when the new Communications Commission
took over has just been issued. The list is mimeographed
and the number of copies is limited.
XXXXXXXX
GOOD DEMAND IN SWITZERLAND FOR RADIO SETS
The demand for radio receiving sets in Switzerland
during the past three years has been very strong and while
no statistics are available for 1933 there is evidence that
the increased demand continued during the year, accordirtg to
a study of radio broadcasting in that country by Consul
David B. Mac go wan, Berne.
Approximately 35 percent of the radio receiving
sets recorded in Switzerland at the present time are of
American manufacture. German manufacturers account for
30 percent; Dutch, 20 per cent; Austrian, 10 per cent; and
the remaining 5 per cent originated in other countries,
principally Great Britain, the study shows.
European competition is very keen in the radio
markets of Switzerland, especially in the smaller "midget"
apparatus having at approximately equal prices the advantage
of universal power transformers and additional long-wave
shifting fe-atures, according to the Consul.
Three new Swiss firms manufacturing 4 to 8- tube re¬
ceiving sets began operation in 1932. It is reported there pro¬
duction was comparatively small, not exceeding 500 sets. Approx¬
imately 80 per cent of the parts used in the manufacture of these
sets are said to -be of American origin. Exports of radio
apparatus from U.S. to Switzerland during 1933 were valued at
$333,523 compared with $651,432 in 1932, $1,132, 691 in 1931 and
$218,704 in 1930.
XXXXXXXX
-9-
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8/10/34.
BUSINESS LETTER NOTES ; LI I I
Commissioner Thad Brown will leave Washington
August 15th, and will not return until after Labor Day.
The hearing of the applications of the Ohio
stations, among them WKBN, Youngstown, WAIU, Columbus, WJAY,
Columbus, and also WXYZ, Detroit has now been set for
Wednesday September 26th.
Acting Deputy Administrator William P. Farnsworth
announced that the public hearing on the advertising agency
trade's proposed code of fair competition, scheduled for
Thursday, August 16th, has been postponed, subject to the
call of the Administrator.
Hampson Gary, having been appointed a member of
the Communications Commission, has retired from the law firm
of Ellis, Ferguson, Houghton & Gary in ’Washington, and the
name of the firm has been changed to Ellis, Ferguson and
Houghton.
Gene Stafford was apointed manager of production
and studios of the American Broadcasting System-WMCA network.
He will also have charge of announcers. Stafford formerly
was director of programs and productions for WMCA.
The Commission has granted a license renewal
to station WPJM at Prescott, Arizona, and has turned down
Frank Wilburn at Prescott who applied for the WPJM frequency
on the ground that he was not financially able to con¬
struct and operate such a station.
XXXXXXXX
-10-
• X
•J
;J .
8/10/34.
COMISSION MEETS MONDAY TO DISCUSS APPOINTMENTS
The full membership of the Communications Com¬
mission will meet Monday August 13th. It was said
that only minor appointments would be discussed, perhaps
confined to the Legal Division but that the appointment
of Assistant General Connsels would not be taken up.
The same official said that neither would the
appointments of assistant secretaries nor the directors
of divisions be taken up, as far as he had been advised.
The return of Postmaster General Farley, chief patronage
dispenser, to Washington, added color to the report that
other appointments might be made.
XXXXXXXXX
FEDERAL COMMUNICATIONS COMISSION
Applications Received (Broadcast Division)
WATR - Harold Thomas, Waterbury , Conn. , Mod of lie
to change frequency from 1190 kc to 1200 kc and hrs of
operation from daytime to unlimited- continguent upon WORC
releasing 1200 kc. WLVA -Lynchburg Broadcasting Corp,
Lynchburg, Va. Construction permit to make changes of equip
and increase power from 100 w to 100 w night and 250 w day.
WBTM -Piedmont Broadcasting Corp, Danville, Va. Construction
permit to make changes in equipment and increase power from 100
w to 100 w night and 250 w daytime. WDBO -Orlando Bdcasting
Co. Orlando, Fla. Spec experimental auth to inc power from 250
w to 500 w night AMENDED to increase power to 1 kilowatt night.
NEW Samuel Nathanuel Morris, Stamford, Texas. Construction
permit to erect a new broadcast station to be operated on 1310
kc,100 w unlimited time. WLBZ -Maine Bdcqsting Co. Inc. , Bangor,
Me. -Construction permit to make changes in equipment and
increase power from 500 w to 500 w night, 1 kc daytime.
NEW OOhio Valley Broadcasting Corp. Parkersburg, WLVa - Construc¬
tion permit to erect a new broadcast station to be operated on
1120 kc, 100 w, unlimited time. NEW WHBY, Inc. Portable. Con¬
struction permit to erect a new broadcast pickup sta to be
operated on 1622, 2060, 2150, 2790, 31600 kc 7.5 watts.
NEW Norman Baker, Muscatine, Iowa. Construction permit to erect
a new broadcast station to be operated on 1170 kc,5 kilowatts
limited time (5:30 am to local sunset and midnight to 3 a.m. )
WHBF Rock Island Broadcasting Co., Rock Island, Ill. Con<*
struction permit to move the transmitter locally, install
new equipment, and increase power from 100 w to 100 w might
and 250 w day.
XXXXXXXX
-11-
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8/10/34
FEDERAL COMMUNICATIONS COMMISSION
Applications Received (Telegraph Division)
NEW A. R. Burnham & L. D. Miller d/'b as BURNHAM-
MILLER FLYING- SERVICE.- C.P. for new General Experimental
station. 31600, 35600, 38600, 41000, 5 w. NEW Enrique Miles,
Portable C.P. for new General Experimental Sts one frequency
below 28000 and one frequency between 31100 & 31600 kc 10 w.
WNFP City of Niagara Falls, N.Y. Niagara Falls, N.Y.
License to cover C.P. for Municipal Police station. 2422
kc to 125 w. WIQXCL - Los Angeles Examiner, Portable
Mobile Modification of C.P. for General Exp station. Exten¬
sion of completion dte to 11/23/34.
WIOXCM - Same as T-I MPE - 3.
WPFH Baltimore Police Dept Baltimore, Md. Modifica¬
tion of license for Municipal Police Sta For auxiliary 200 w
transmitter. NEW Interstate Geophysical Exploration
Portable C.P. for new Geophysical sta. For one frequency
between 3000-6000 kc 15 w. W8XBE - City of McKeesport
Police Dept McKeesport, Penna. License to cover C.P. for
General Experimental station. 33100 kc to 15 w. NEW
University of ’Washington, Seattle, Wash. C,P. for new
General Exp. sta. All Exp. frequencies 5 w.
Applications Received (Telephone Division.)
NEW Pacific Portland Cement Co. , Portable-Mobile
Construction Permit for New General Experimental sta. 38600
kc, 10 w.
NEW (CBS) Campbell Soup Co., Camden, N.J. Starts
October 5, 1934. Friday 9:30- to 10:30 P.M. 84 stations coast
to coast - originates KRJ, Los Angeles. Program Hollywood
Hotel, El Brendel, comedian, Dick Powell and girl vocalist
being selected by nationwide auditionslauditionsl Louella
Parsons interview movie st?rs; Ted Fiorito's Archestra
and vocalists. Agency F. Wallis Armstrong Co. Phila, Pa.
NEW Time Inc, New York N.Y. Time starts 9 to 9:30
EST '
NEW Wra Wrigley, Jr. Co. , Chicago, Ill. Starts Oct 1,
1934. Mon to Fri incl. - 7 to 7:15 p.m. and 11 to 11:15 p.m.
EST 54 stations coast to coast -originates WBBM, Chicago.
Program Nyrt and Marge,
xxxxxxxx
-12-
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
HADCOAL iWJ/.0CAST)l?G C
legal department
$ H @ 1 0 % (f
* « . AUG 1 5 1934
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INDEX TO ISSUE OF AUGUST 14, 1934.
Page
Broadcasters Presidency Causes Considerable Speculation . . 2
Dealers Charged With Misuse of "Marconi" & "Edison" Names. . 3
Manufacturers Code Decision Not Expected Soon . 5
Commission Allows Interlocking Directorates More Time . 5
New British Station Promises Nation-Wide Coverage . 6
Wile, Jr. RadioPublicist For New York Agency . 7
Correcting a Correction . 7
Business Letter Notes . 8
Fisher Goes to Gary’s Old Law Firm . 9
Irish Radio Demand Increases 70 Percent in 2 years . 9
Canadian Advisory Committee Recommends Advertising Latitude 9
Decisions of Radio Commission . 10
Credit Line of Communications Commission Deleted . 10
New England Station Experimental Licenses Extended .... 11
No. 749.
.
• -
■
.
•
August 14, 1934.
BROADCASTERS PRESIDENCY CAUSES CONSIDERABLE SPECULATION
Up to this time the election of the president and
officers of the National Association of Broadcasters has
usually been pretty well agreed upon ahead of the meeting
but at the Cincinnati Convention, September 17th, the situation
will be different. First because it will be the first election
to be held under the new by-laws of the Association, and
second, because thus far no president has served more than
two terms and Alfred J. ( "Hollywood'1 ) McCosker of WOR, ■■Newark,
is serving his second term. There is. nothing in the by-laws
that would prevent a president from serving as many times as
the members desire to elect him.
Nevertheless there is already considerable specula¬
tion as to whether or not "Hollywood'’ who has been a popular
president, and doubtless could be re-elected for a third term,
will "choose to run. "
Under the new by-laws the president will appoint
a nominating committee as usual but in addition to whoever
this committee nominates, the name of any other members may
be placed in nomination, if signed by 10 members of the
association.
Thus four or five tickets might easily be placed in
the field. Certainly the new by-laws offer an opportunity
to interject politics into the election of officers. Besides
Mr. McCosker the names of Leo Fitzpatrick of WJR, Detroit,
First Vice President of the Association, and John Shepard, 3rd,
of WNAC, Boston, Second Vice President have been mentioned.
Also that of Powel Crosley, Jr. , of Cincinnati, but it was
said in other quarters that because of his many interests
Mr. Crosley probably would not consider serving. The
opinion was ventured that no executive of either the N.B.C,
or Columbia would be apt to run, the supposition being that
anyone so closely affiliated with eitheS' ^f the major networks
might meet w^ith opposition.
The name of Judge Ewin Davis, now a member of the
Federal Trade Commission, has been added to the speakers list
at the Cincinnati Convention next month. Judge Davis, wrho
as a member of Congress, helped draft the original Radio Act,
-2-
8/14/34.
and was the author of the famous Davis amendment providing
an equal distribution of radio facilities, will tell the
broadcasters what the plans of the Federal Trade Commission
are with regard to false and misleading advertising as it
relates to radio.
Those who happened to hear the straight- from- the-
shoulder talk Judge Davis made to the advertising agents with
regard to radio in Washington several years ago will no doubt
look forward to what he will have to say in Cincinnati*
Judge Davis, a southern type of statesman, on the
old Champ Clark order, though an excellent speaker, is seldom
heard from but when he speaks usually talks to considerable
length and puts much time and thought in what he has to say.
It will have added importance at this time due to the fact that
eventually Judge Davis will become chairman of the Commission.
Senator Clarence C.Dill, of Washington will also
be among the speakers at Cincinnati.
X X X X X x;j X
DEALERS CHARGED WITH MISUSE OF "MARCONI " AND "EDISON "NAMES
Unauthorized and wrongful appropriation of the names
"Edison" and"Marconi" applied to radio sets manufactured or
assembled and sold by them, is charged by the Federal Trade
Commission in a formal complaint issued against Marconi Radio
Corporation and Edison Radio Stores, Inc. , doing business
at 67 West 125th Street, New York.
The complaint charges the respondents with adopting and
following the scheme of appropriating the names of well-known
manufacturers, and applying them to radio sets manufactured or
assembled and sold by them and thereby appropriating to them¬
selves the good will of such well-known manufacturers,, all in
violation of the Federal Trade Commission Act, making unlawful
unfair methods of competition in interstate commerce.
Joseph Frank is president of Edison Radio Stores, Inc.,
and controls both concerns. Referring to the use of the name
"Edison" by the respondents, the Commission's complaint says:
"Among the companies organized a.nd controlled by the
said Thomas A. Edison before his death, is Thomas A. Edison, Inc.
which said company is still engaged in the manufacturing of
-3-
A ' .
11 ,
8/14/34.
many of the machines and articles invented and developed
by Thomas A. Edison, Thomas A. Edison. , during the years 1928
to 1930 , inclusive , manufactured and sold radio sets valued at
many millions of dollars, 'and during the said period spent
several millions of dollars in advertising its said radio
products. All of the r adio sets manufactured and sold by
Thomas A. Edison, Inc. , featured the name 'Edison* as part
of their brand name. "
The complaint charges that the respondents, Marconi
Radio Corporation and Edison Radio Stores^ Inc., have placed
on radio sets sold by them escutcheon plates bearing the name
"Edison" in large letters, followed by the words "Radio Stores,
Inc. " in small letters not readily seen by prospective pur¬
chasers. The respondents, the complaint avers, have no
authority or license to use the name "Edison" on their radio
sets and such use tends to and does mislead and deceive the
trade and purchasing public into the erronous belief that
their sets have been manufactured by Thomas A. Edison, Inc.
Such practices are asserted in the complaint to be false, decep
tive and misleading and tend to divert trade to the respondents
from their competitors who do not employ false, deceptive and
misleading practices.
The respondents are given until September 14th
next in which to make answer to the charges.
Two additional similar complaints were subsequently
issued by the Trade Commission. The respondents are the
Temple Electric Corporation, of 80 Cortlandt Street New York
City, and Jack D.Mendelson, trading under the firm name of
Metro Manufacturing Company 2052 80th Street , Brooklyn.
In both complaints, the respondents are charged
with using the name "Edison" on the name plates of their radios
conveying the implication to the trade and to the purchasing
public that the sets were manufactured by the Thomas A. Edison
Company.
In the complaint a.gainst the Temple Electric Corp.
the respondent is also charged with unfairly and improperly
using the names "Victor" and "Brunswick". It is held in
the case of the use of the name "Victor" that this carries the
implication that the radio is the product of the R.C. A. Victor
Company, while the use of the name "Brunswick" is claimed
to be an unfair simulation of the name "Brunswick" , a radio
formerly produced by the Brunswick-Balke-Collender Company
and now manufactured by the radio and phonograph division of
Warner Brothers Pictures, Inc. , which organized a corporation
under the name of Brunswick Radio Corporation and purchased
the rqdio business of the Brunswick-Balke-Collender Co.
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In the case of Me.ndelson, that respondent is
charged with unfairly simulating the names "Brunswick"
as well as wrongfully using the name "Edison" in the sale of
his products.
XXXXXXXX
MANUFACTURERS CODE DECISION NOT EXPECTED SOON
A decision as to whether or not the radio
manufacturers will be permitted to operate under a code of
their own is not expected to be made until about the end of
the month. At this time manufacturers are operating under
the electrical code but at a hearing recently advance strong
arguments in favor of a code of their own.
The National Electrical Manufacturers Association
strongly opposed the application for a separate code for radio.
Capt. William Sparks, of Jackson, Mich. , chairman of the Cdde
Committee of the Radio Manufacturers Association, Bond Geddes
and others put up strong arguments in favor of the radio in¬
dustry going ahead under "its own steam."
Numerous conferences have since been held with
Government officials and the opinion has been expressed that
the radio manufacturers will probably gain their point. If
not, the fight will doubtless be continued because the radio
manufacturers feel that their industry is too large and too
important to be "lumped in with N.E.M.A.
XXXXXXXX
COMMISSION ALLOWS INTERLOCKING DIRECTORATES MORE TIME
The principal business transacted at the meeting
of the Communications Commission, attended by the full member'
ship, last Monday was extending the time of the present
interlocking directorates for 90 days, to give the Commission
time to looxk into the matter further. The new law says
it shall be unlawful for any person to hold the position of
officer or director of more than one carrier subject to the
Communications Act unless such holding shall have been
authorized by the Commission upon due showing that neither
public nor private interests will be adversely affected
thereby.
-5-
8/14/34.
Also personnel matters were discussed but no de¬
cisions were reached with regard to principal assistants which
cause one observer to remark, "I guess Farley hasn't had time
to get around to the Communications Commission yet. "
Another meeting of the entire Commission will be
held next Monday August 20th.
XXXXXXXX
NEW BRITISH STATION PROMISES NATION-WIDE COVERAGE
It is expected that the B.B.C.*Js new giant station
at Droitwich will attain for the first time in British broad¬
casting history nation-wide coverage. According to reports
reaching the United States, the Droitwich station will be five
times as powerful as the present 5XX at Daventry.
Records at the Communications Commission in
Washington list Daventry Ss power at 20,000 watts which would
mean that the power of Droitwich will be somewhere around
100,000 watts. This isn't anything like WWL, operating with
500,000 watts at Cincinnati, but is pretty high power for
Europe.
The new station has two 700 foot masts. Droitwich
is near Birmingham which is about 100 miles northeast
of London.
"Those living in and around our big cities, where two
programmes are now obtainable even with a simple wireless set,
may find it difficult to believe that over 3,000,000 people
in the north of England, north of Scotland and other parts of
the country, at present get only a most miserable wireless
service and, in some outlying places practically none at all
unless an expensive receiver is installed." a British writer
comments.
"Noel Ashbridge, the B.B.C.'s Chief Engineer, stated
recently that when the new broadcast distribution scheme in
Great Britian is complete - this involves improvements in
the Regional service in addition to the opening of Droitwich -
98 per cent of the population will receive one programme well
and 85 per cent will enjoy reasonably good reception of two
programmes. "
"Reception of our National programme on the Continent
will be decidedly better than at present. This aspect of the
matter is important, for it is obvious that radio is as potent
an instrument of war as of peace.
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"Should another conflict occur, there will be no
more ‘news for home consumption’, no possible concealment of
losses, no exaggeration of Victories. Europe’s radio giants
will broadcast the news direct, unfettered by censorship.
"We have at last awakened to the necessity for
preparedness in the air; now we need to realize fully the
value of preparedness in the ether. Almost every month we
hear of new super-powered broadcasting stations being erected
in other countries."
Briefly, the change now contemplated is that the
National programme will be given to the whole of England, Wales,
Scotland and Northern Ireland by one station - Droitwich -
and the present London, North, West and Daventry National
transmitters are to be closed.
XXXXXXXX
WILE, JR. , RADIO PUBLICIST FOR NEW YORK AGENCY
The Young and Rubicam Agency in New York have
secured the services of Frederick William Wile, Jr., to develop
their radio publicity.
Young and Rubicam have many radio accounts.
Mr. Wile, Jr. , gained his knowledge of radio
publicity by serving a considerable time in important positions
in the press department of the Columbia Broadcasting System
in New York. He previously made an excellent record for
himself in Princeton University. After graduation he was
Secretary to the American Ambassador to Italy, John WLGarrett.
XXXXXXXXX
CORRECTING A CORRECTION
In reprinting a letter from Arch McDonald, WJSV
announcer, to correct an erroneous impression created by an
anonomous letter written to Mr. McDonald we quoted him as
saying "I have been adverse to criticism," when it should have
been "I have never been adverse to criticism and have always
read letters of criticism over the air and have tried to benefit
by suggestions offered."
We regret the error and trust it has not caused Mr,
McDonald additional embarrassment.
Mr. McDonald was signally honored by an " Arch
McDonald Day" recently, as part of a celebration at his old home
in Chattanooga, in connection with the Chattanooga Baseball
Team skyrocketing from 8th to 2nd place in the League.
XXXXXXXX
-7-
BUSINESS LETTER NOTES
8/14/34.
Evidently Senator Dill, of Washington living up
to his announcement that he would not run again for the
Senate, did not file, August 11th, the last day the candidates
had to announce their intentions.
If he did, several correspondents of Washington
state papers of whom inquiry was made, were unaware of the
fact. So it looks as if Senator Dill was finally out of it.
George B. Storer, president of the American Broad¬
casting System escorted a party of distinguished visitors into
the master control room of WMCA last week to hear the network
speech on charter reform from New York City by former Governor
Alfred E. Smith. Asking the operator on duty his name, Mr.
Storer formerly introduced Lee Gardner as his guest.
When the introductions were completed, Gardner, wary
of gate crashers, turned to his boss. "And now", he inquired,
"may I ask your name?"
J.R.Roppele, chief engineer of WOR, in connection
with the construction of the station’s new; 50,000 watt trans¬
mitter, has visited all the stations in the East that operate
with that power. WOR’s cooling system pool, used for keeping
the tubes from burning up, will be in two sections. In his
recent visit to WLW Mr. Poppele said he learned that the
station was off the air for six hours while the single pool
was being cleaned and refi lied.
"Among the many courses given in the East Side
Continuation School, at 43 Oak Street, New York City are
classes in radio and electrical wiring. " writes Arthur
Burnham, of that institution, which is a part of the New
York Public school sys.tem. "We are anxious to obtain
additional equipment for the students. We wonder if the
manufacturers and broadcasters will send us discarded radio
and electrical equipment of any kind; for example, radio
sets, transformers, generators etc. As these materials are
not furnished by the Board of Education, our best means of
obtaining them is an appeal to the public, which has readily
responded in previous years."
XXXXXXXX
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FISHER GOES TO GARY'S OLD LAW FIRM
Ben S. Fisher, Assistant General Counsel of the
Communications Commission resigning and joining the law firm
of Ellis, Ferguson and Houghton in Washington exchanged
places with Hampson Gary who recently resigned from that
firm to accept the Commissionship.
Mr. Fisher has been with the Commission about
four years. His efforts were said to have been responsible
for the shutting down of 175 unlicensed stations. Out of the
35 criminal cases prosecuted, he is credited with 32 con¬
victed or pleading guilty.
XXXXXXXX
IRISH RADIO DEMAND INCREASES 70 PERCENT IN TWO YEARS
Radio is making prograss in the Irish Free State,
according to a report from Vice Consul Edwin J.King, Dublin.
Imports of radio sets and parts into the Free State
in 1933 were valued at L226,000 against L136,894 in 1932 and
L132,275 in 1931. Considering the steadiness with which
radio price levels have been falling, the report points out,
it can easily be seen that the radio "idea" is taking hold.
The value of imports as shown above has increased more than
70 percent during the last two years.
On may 31 of the current year the number of
receiving sets in use in the Free State was 52,100 compared
with 45,000 on December 31,1933. One American set, which
is completely assembled in the country, leads all others in
sales. Several other American makes, however, are also
meeting with favor.
XXXXXXXX
CANADIAN ADVISORY COMMITTEE RECOMMENDS ADVERTISING LATITUDE
Considerable misunderstanding of the status of the
Canadian Commission has occurred in the United States. This
misunderstanding was probably due to the appointment of a special
committee which was commissioned to "inquire into and report
upon the operations of the Commission, under the Canadian Radio
Broadcasting Act, as amended at the last session of Parliament. "
The functions of the special committee were merely
advisory. The question was raised as to whether the committee
thought that the law as to advertising content should be aban¬
doned. The chairman of the committee was emphatic in his op¬
position to such change, stating that the committee merely in¬
tended to suggest a little more latitude in the manner of its
enforcement. The Parliament ignored the suggestion of the
committee that the Commission appoint a general manager
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A verbatim report of the special committee on radio
follows:
Your committee held twenty sessions land heard 37
witnesses, including 5 Members of Parliament, and, after
reviewing the evidence, it has been made apparent to your
committee that the establishing of national broadcasting
in Canada presents many difficulties, for the correction of
which time, experience, and large expenditure of public
money will be necessary.
Your committee therefore recommends:
1. That in view of evidence given before this
committee, the Government should, during the recess, consider
the advisability of amending the Act, with a view to securing
better broadcasting facilities throughout the Dominion.
In the opinion of your committee, radio broadcasting
could best be conducted by a general manager.
2. That the collection of the fees for radio
licenses should be simplified and that one license fee
should cover only one receivingset.
3. That the provision of the Act dealing with
advertising should be more liberally interpreted.
4. That greater use of electrical transcription
be permitted.
XXXX XXXX
DECISIONS OF THE FEDERAL RADIO COMMISSION
Applications Granted .
(Broadcast Division)
KIEM Harold H.Hanseth, Eureka, Cal. Granted consent to
Vol Assign, of Lie. to Redwood Broadcasting Co Inc. WNAX
The House of Gurney, Inc. Yankton, S.D. Granted renewal of Lie
570 kc 1 KW night, 2§ KW LS Unltd Also granted renewal for
auxilliary transmitter, WAAF Drovers Jurnal Publishing Co. ,
Chicago, Ill Granted renewal of lie 920 kc 500 w. Daytime.
KMLB Liner's Broadcasting Sta Inc Monroe, La. granted Mod
of CP extending completion date to Sept 1,34. WDRC WDRC,Inc
Hartford, Conn. Granted Mod. of CP extending completion date
from Aug' 27 to Sept 27/34. WTCN Minn Broadcasting Corp, Minn¬
eapolis, Minn. Granted Mod. of CP extending completion date
from Sept 1 to Dec 1.34. KGEK Elmer C. Boehler , Yuma, Colo-,
granted CP to move transmitter and studio from Yuma to Ster¬
ling, Colo and make minor changes in equipment. KOIN
Koip,Inc. Portland, Ore. granted Mod., of CP to make changes in
eqpt. and extend commencement date from Sept 15 to Dec 14/34.
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CREDIT LINE OF COMMUNICATIONS COMMISSION DELETED
Doubtless listeners will be relieved to learn
that they will no longer have to listen to the trite line,
"This station is operated by authority of the Federal Radio
Commission. "
This was revealed through the following order
issued to all broadcasting stations last Tuesday, August
7th, which read:
"TO ALL BROADCASTING- STATIONS: A number of
inquiries have been received by the Commission as to whether
stations must make announcements at the beginning and end of
the day's announcement that 'this station is broadcasting on
_ kilocycles under the authority of the Federal Communications
Commission. 1
Attention is invited to the fact that this provision
was omitted from the revised Rules and Regulations of the
Commission effective February 1,1932, and this announcement
has not been required since that date. "
XXXXXXXX
NEW ENGLAND STATION EXPERIMENTAL LICENSES EXTENDED
The following action was taken by the Radio Division:
WJAR The Outlet Company, granted Ext. of Spec. temp.
Exp .auth to operate with additional 250 watts power during
nighttime for period beginning 3 AM, EST , Sept 1, and ending
not later than March 1,1935, subject to withdrawal or termina¬
tion by the Commission, without prior notice or hearing in event
objectionable interference is caused.
WEAN Shepard Broadcasting Service, Inc. Providence,
L.I. granted Ext of Spec. Auth to operate with additional
250 watts power during nighttime for period Sept 1 to
March 1/35.
X X X X X X X
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Set For Hearing
WEHC Community Broadcasting Corp. Charlottesville,
Va. CP to make changes in equipment; change freq. power and hours
from 1330 kc, 500 watts, daytime to 1420 kc. 100 w. night,
250 w. LS, Unltd time. NEW The Evening News Assn, Detroit,
Mich, granted CP (Temp Broadcast pickup} 2150 kc 50 watts.
NEW Harold Kieth Goshen, Ind. CP (Gen. Exp) 1614 3492.5
4797.5,6425, kc. 30 watts (For visual broadcasting)
Miscellaneous
NEW H. E. Studebaker, Appl. for C.P to erect new
station to operate on 1420 kc,100 watts, reinstated on
hearing docket. . WXXBS American-Republican Inc Waterbury,
Conn, granted Mod of CP extending completion date from Sept
11 to Nov 11/34. KSD The Pulitzer Publishing Co. St Louis,
Mo. granted Mod of CP extending commencement date of Aug 30/34
and completion date to Nov 29/34 Also dismissed without
prejudice, special exp. auth to increase night power from 500
w to 1 KM
Applications Received( Telegraph Division)
~KIEC- ® ' Karl Hansen, Port Alexander, Alaska
Lie tomcover CP for Pt to Pt Tel sta. 2994 kc 50 w
KGXW Karl Hansen, Port Alexander, Alaska, Lie to cover CP
for Coastal Tel station. 460, 500 kc 200 watts. ~ W6XEE
Thomas L.Pettigrww, Compton, Calif. Lie to cover CP for Gen’l
Exp station. 100000 to 300000, 600000 kc 75 watts. WNEJ
Lie to cover CP for Pt to Pt Teleg station. Muirkirk,Md 4190
5230 kc 2 KW.
NEW Paul D. Langrick trading as LANGRICK RADIO
ENGINEERING- SERVICE portable C.P. for new General Exp. station.
1614,2398, 3192.5, 4797. 5 , 6425,8655 , 12862. 5 , 17310,23100 , 25700,
26000 , 27100 , 30100 , 31100 , 33100 , 34600 , 35 600 , 37100 , 37600 , 38600 ,
40100,40600,41000,86000 to 400000,401000 kc and above.
NBC NEW ACCOUNTS
New-Wheatena Corp-Pacific Coast Agency Albright
and McKee 1300 South Penn Sq Phila,Pa. Starts Aug 27, 1934.
New-Simmons Co (Beds and Mattresses) Chicago, Ill.
Fletcher and Ellis; starts September 4, 1934 Network WJZ WBZ
WBZA WBAL WMAL WSYR WHAM KDKA WJR WCKY WENR-WLS KWK KWCR
KOIL WREN; Program Mrs Franklin D. Roosevelt and Josef
Koestner's Orchestra."
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WASHINGTON*©, tffyi l >CASTMl8~
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CONFIDENTIAL — Not (or Publication
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INDEX TO ISSUE OF AUGUST 17, 1934. ,
Page
Predicted 1934 Radio Advertising Close to 1931 Peak . 2
Wholesale Radio Trade Asks Code Modification . 3
Brinkley Tries to Buy His Way Back . 4
Capital Orders New Police Radio Sets . 4
Flamra & Storer Deny Agency Agreement Breach . . 5
'Audio Projector’ Sifts Tone In Air . . 5
Most Broadcast Stations Within 10 kc Deviation . 6
Telephone Probe Widened . . 6
Telegrah Div- applications granted . 9
Business Letter Notes . 10
Advertising Men Would Censor Themselves . 11
Hearst's Plans Expanding Radio Interest . . 11
NBC New & Renewal Accounts . 12
No. 750.
,
**
August 17, 1934.
PREDICTED 1934 RADIO ADVERTISING CLOSE TO 1931 PEAK
The total radio advertising volume during 1933-34
broadcasting season amounted to $66,671,000. Though it is
impossible to tell exactly how this figure , compares with
the peak of the industry, it is probable that the current
season* s revenues have been approximately 15.0$ below that
figure. Granted that the present decrease in business
activity is only temporary and that local broadcast adver¬
tising begins to register gains in the fall, total radio
volume in 1934 should be close to the 1931 peak.
National network volume, however, will play a more
important part than in 1931, when it constituted 51.0$ of
total broadcast advertising. During 1933-34 this proportion
rose to 55.8$. The volume of broadcast advertising from
June 1933 to July 1934, is found in the following table:
Class of Business Gross Receipts
National networks . $37, 254, 366. 00
Regional networks . 550,733,00
National spot . 12 , 603, 433. 00
Local 16,258,575.00
TOTAL . . $66,671,107.00
With the presentation of the June report the
National Association of Broadcasters Statistical Service
completes the first year of collection of comprehensive
trade statistics for radio broadcasting. Established in
July of last yeafc, the service has made available for the
first time in the history of the industry figures regarding
not only the national network advertising but of broadcast
advertising placed over regional networks and individual
stations.
Though the summary of data thus far compiled
by the service is for a broadcasting season rather than a
calendar year, it will be of interest to those concerned
with radio advertising in that it presents in detail for the
first time the various phases of this highly complex field.
-2-
/
8/17/34.
Broadcast advertising in June experienced a marked
decline as compared with the previous month,. Seasonal and
general business conditions combined to produce this result.
Gross sales of time amount to $5,418,732, a decrease of
21.6$, as compared with May. National spot volume lost
most heavily, declining 34.1$, due mainly to a 45.8$ de¬
crease in electrical transcription business. Despite a
16.7$ drop in revenues as compared with May, June national
network volume was the best in the history of broadcasting.
In the non-network field, stations of over 5,000
watts in power lost most heavily, due to national spot trends.
Losses were fairly evenly distributed throughout the various*
geographical districts, with the South and Far West experienc¬
ing slightly greater declines than other sections. Declines
were heavy in all fields of industrial sponsorship. Local
beverage, national spot soap and kitchen supply, local amuse¬
ment, and automotive advertising were the only fields wherein
gains were recorded over the preceding month.
June advertising volume was as follows:
Glass of Business June
National networks . $3, 103, 796. 00
Regional networks . 35,599.00
Individual stations . 2,279,337.00
TOTAL . $5,418,732.00
National network volume declined 16. 7$ over the
month, regional network advertising 20.5$ and non-network
advertising 27.6$. Despite the decline as compared with
May, national network volume was 51.5$ over that of June
of the preceding year. Non-network advertising was 8. 9$
greater than July 1933, the nearest comparable figure avail¬
able.
XXXXXXXX
WHOLESALE RADIO TRADE ASKS CODE MODIFICATION
The National Recovery Administration announced that,
until, August 29, objections to criticisms of, or suggestions
concerning a proposed modification of the code for the whole¬
sale radio trade may be filed with Deputy Administrator Frank
H.Crockard, 1320 G Street, N. W. Washington, D. C.
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Through its divisional Code Authority, the trade
has requested the modification which provides that the Code
Authority shall consist of 19 members of the trade. One
member would be the president of the R.W.A. ; thirteen
would be chosen by the Board of Directors of the Wholesalers
to represent its members in the various seditions of the
country; and four members would be chosen from members of
the trade who are not members of the R.W.A.
XXXXXXXX
BRINKLEY TRIES TO BUY HIS WAY BACK
It is reported that Dr. J. R. Brinkley , goat
gland specialist, who was in Washington recently on an un¬
know mission is trying to buy time on a number of stations.
Though Dr. Brinkley is reported to have offered
the stations whatever rate they desired for talks adver¬
tising his hospital at Del Rio, they are reported to have
turned him down flat.
Since having been closed down by both the
American and Mexican G-overnments the goat gland doctor
has been trying to figure out different ways "to come
back", but evidently has not succeeded as yet.
XXXXXXXX
CAPITAL ORDERS NEW POLICE RADIO SETS
Purchase of 20 additional short-wave receiving
radio set has been ordered by the District Commissioners
on recommendation of the Police Department. The new equip¬
ment is to be installed in police motor vehicles. The
contract went to the American-Bosch Corporation, at a unit
price of $52.50.
XXXXXXXXX
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8/17/34
FLAMM AND STOKER DENY AGENCY AGREEMENT BREACH
Issued to the radio editors of all New York pub¬
lications, the following statement was jointly signed by
Donald J. Flamm, persident of Kinickerbocker Broadcasting
Corporation, and George B. Storer, presicLnnt of Federal
Broadcasting Corporation. Mr. Storer is also president of
the American Broadcasting System:
"In order to allay the impression which has unfor¬
tunately been spread by the publishing of unauthorized rumors
with respect to the relationship between Federal Broadcasting
Corporation and the Knickerbocker Broadcasting Corporation,
licensee of radio station WMCA; Federal Broadcasting Corpor¬
ation most emphatically wishes to make it plain that there
has been no breach of the agency agreement, existing between
Federal and Knickerbocker, and furthermore, that the relation¬
ship between the Federal Broadcasting Corporation and the
American Broadcasting System is most harmonious."
XXXXXXXX
'AUDIO PROJECTOR.':* SIFTS TONES IN AIR
A new method of recreating and projecting sound,
which provides the auditory illusion of tone arriving at the
ear from a wide angle, as from a large number of musicians
playing on a stage instead of from a single point as when
music is reproduced by a loud-speaker, was given its first
demonstration in New York City last Tuesday outside of the
New York laboratory where the device has been under design
for three years,
"Music intercepted from a local station or repro¬
duced from a recorded selection, was given with such brilliance
over the system, compared with the tone emitted by a standard
radio-phonograph unit utilizing the same source of program,
that well-known musicians who heard the test said they were
amazed at the fidelity and realism attained, " the New York
Times says describing the test. "Tones not heard through one
instrument were prominent in the other, in good balance, with
the other orchestra instruments.
"The 'audio projector' as the device is called by
its inventor, Maximilian Weil, New York electro-acoustic con¬
sulting engineer, is scarcely larger than the average-sized
radio cabinet or console now utilized in the home. The
electrical amplifier and radio set employed is no different
from thousands of other such apparatuses in use today, Mr.
Weil said. However, the mechanism that transforms the tones
from electrical to acoustic energy and gives the vibrations
the illusion ofrealism is far different, he added.
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"The cabinet in which the projector is installed
has slender openings around the edges of the rectangular case.
Through these slots the sounds issue in all directions at once.
"Engineers, working for years on the loud-speaker
problem, have been confronted with the seemingly insuperable
obstacle that in radios and phonographs for the home sound
must come through a single opening in the side of the cabinet.
This method invariably makes the tones seem cramped because
they are projected in the form of a concentrated beam at the
listener, like a beam of strong light at the eye. The effect
is disconcerting. We have apparently attained the illusion
of a symphony of sound coming from many sources at once.
"Mr. Weil said he has been notified by his attorneys
that "highly basic patent rights" will accrue from his designs.
"The inventor is a member of the American Institute
of Engineers, and the Aeronautical Society of America and other
bodeis, and is president of the Audak Company. During the
World War he submitted to the government an electrical pro¬
tective device for surface and submarine craft."
XXXXXXXX
MOST BROADCAST STATIONS WITHIN 10 KILOCYCLES DEVIATION
The engeering department of the Federal Communica¬
tions Commission, measured 545 broadcast stations during
July. The stattions measured of which the deviation was
within 0-10 cycles was 365. The number within 11 - 25
cycles was 142 and within 26 - 50 cycles 33 and over 50
cycles 5.
XXXXXXXX
TELEPHONE PROBE WIDENED
The Communications Commission moved at its meeting
last Thursday (August 16th) to broaden its investigation of
the telephone business.
It drafted new orders for interstate companies.
Announcement of the details was expected later in the day.
Since it began the investigation July 20 the
commission has ordered telephone companies under its juris¬
diction to report their rates, ownership and practices.
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These reports are due September 1. Hearings on
rates and practices which the commission regards as objection¬
able will follow.
The following orders were issued by the telephone
division of the Commission:
Pursuant to Section 213 of the Communications Act
of 1934 each carrier subject to this Act engaged principally
in wire telephony, whose gross operating income per yeafc
exceeds $50,000, shall on or before October 1,1934, file
with the Commission a verified report in duplicate showing:
1. Its corporate history, including A.- its original
capitalization, X.e., the number of shares of stock originally
outstanding, and (a) how much thereof was sold or otherwise
disposed of and - (b) what price per share was received
therefor and of what the consideration specifically con¬
sisted. B. whether said initial carrier acquired and
other telephone system, company or corporation by merger,
consolidation, purchase or otherwise, and, if so (a) the
date of any such acquisition (b) the names of the persons
firms, companies, corporations or systems from whom such
property was acquired; (c) the purchase price or considera¬
tion for any such mergerm consolidation or other manner of
acquisition, and (1) if by issuance of stocks or bonds
the price at which the sane was bo issued; (d) duplicate
copies of any contracts, leases, agreements or written
memoranda in connection therewith.
2. Its service history, including: A. the territory
initially served by the original carrier; the number of
telephones originally installed by it, together with the
monthly charge for each telephone so installed and operated
at said times. B, the territory served immediately prior to
the acquisition (if any) by the initial carrier, of each
telephone system, company or corporation; the number of
telephones in use at said time , together with the monthly
charge for each telephone operated by the carrier reporting:
C. the territory served after each and every acquisition
of any other telephone system, company or corporation,
whether by merger consolidation, purchase or otherwise;
the number of telephones then in use at said time, together
with the monthly charge for each telephone then operated
by the carrier reporting; D each and every change made
in the telephone tariffs charged by the reporting carrier
from the beginning of its service to the date of this
Order, and the dates when such changes became effective,
the territories affected, and the number of telephones
affected by each change.
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8/17/34.
Pursuant to section 202 of the Communications Act of
1934, each carrier subject to this Act engaged principally in
wifce telephony, shall, onmr before Octoher 1,1934 file with
the Commission a verified report in duplicate showing:
1. All services rendered free of charge to any person or corpor¬
ation for the period from July 1,1933 to June 30,1934,
together with
(a) the names and addressed of such persons or
corporations
w ' the character of such services
2. All services rendered to any person or corporstion at other
than the regular rate for the period from July 1,1933 to June
30,1934, together with
(a) the names and addresses of such persons
or corporations
(b) The character of such services.
3. All services rendered by the reporting carrier for any in¬
dividual, person or corporation in exchange for, or in payment
of services rendered for such reporting carrier, except when
such .exchange of services is between common carriers;
(a) the names and addresses of such persons
or corporations
(b) the character of such services
The Interstate Commerce Commission has heretofore con¬
ducted an investigation to determine ACCOUNTING- RULES FOR TELE¬
PHONE COMPANIES in that Commission's Docket #25705 and decided
and rendered its report on ACCOUNTING RULES FOR TELEPHONE
COMPANIES, and the jurisdiction and authority to fix and promul¬
gate accounting rules for telephone companies was transferred
from the Interstate Commerce Commission to the Federal
Communications Commission by operation of the Communications
Act of 1934, and representatives of certain state commissions
or regulatory bodies having jurisdiction over ijtrastate service
rendered by telephone carriers have indicated that they are
desirous of being heard on said report of the Interstate Commerce
Commission (decided July 9, 1934) and are desirous of filing
exceptions and objections and of making suggestions with respect
to said report of Interstate Commerce Commission.
Representatives of the several states and of the
commissions or regulatory bodies thereof having jurisdiction over
the telephoje carriers therein, and all other parties at interest,
shall hal/e until October 1,1934, within which to file exceptions and
objections to the report of the Interstate Commerce Commission,
rendered in its Docket 25705, affecting accounting rules for
telephone companies, or to suggest amendments or changes in
such accounting.
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8/17/34
That all such exceptions, objections or suggestions
shall be filed in writing and fifteen copies thereof pro¬
vided within the time herein specified.
Ordered by the Telephone Division of the Federal
Communications Commission this the 16th day of August, 1934.
The Telephone Division also took the following action:
W2XDJ Bell Telephone Dabs Ocean Township, N.J. granted Mod. of
Lie for additional freqs. 63000, 65000, 71000, 72000 kc. All
other terms to remain the same as in existing license.
RATIFICATIONS
(Action taken July 26th)
W2XDJ Bell Tel Labs, Inc., Ocean Township, N.J.
granted renewal of Spec Exp station Lie for Exp Serv in exact
conformity with existing license.
(Action taken Aug 9th. )
Wj FK Edward C.Flanigon, CLYTIE, Cleveland, 0. granted
third class private ship radio station license. WJFJ Harry
Olson, SENORITA San Francisco , Cal granted thrid class public
ship radio station license.
X X X X X X X
TELEGRAPH DIVISION- APPLICATIONS GRANTED
KICO Nakat Packing Corp Makeen, Alaska granted license
2566 kc. 100 watts, NEW Burnett M.^razer, E.C.Pyle, Geo. M.B.
Lane & E.E. Doherty d/b as Frazer ^adio Co . Portable-Mobile ,
Los Angeles granted two CP 30100 to 40100 kc,15 watts. NEW
A. R. Burnham & L.D. Miller d/b as Burnham- Miller Flying Service,
Portable-Mobile Omaha, Nebr granted CP 31600, 35600, 38600, 41000
kc; 5 watts.
W8XBE City of McKeesport, Pa. Police Dept granted
license 33100 kc 15 watts. WIXAX Town of Brookline, Mass,
granted license 30100, 33100, 37100, 40100, 86000-400000,
401000 and above; 5Q watts
W6XEH City of Long Beach, Can. granted license
30100, 33100, 37100, 40100 kc; 100 watts.
-9-
BUSINESS LETTER NOTES
8/17/34,
G-eorge Henry Payne, of the Federal Communications
Commission will be interviewed over an NBC-WEAF network on
Tuesday August 21, on "What Civilization Owes to Communications. 11
The interview at 8:00 p.m. , Eastern Standard Time will be
conducted by Martin Co del.
Washington had a chance to see the NBC Mobile
transmitter in connection with the broadcast of the arrival
of the Tuscarora Indian runners who delivered the invitation
to President Roosevelt at the White House. Billy Coyle in
charge of the transmitter reported a perfect performance.
It is the same unit used in connection with the
New York Naval review and the landing of the Stratosphere
balloonists.
Reports from the Pacific' Coast are Earl Anthony's
KNX made the pargest profit for the year of any station in
Los Angeles. KNX was rated second in total gross business
with a reported $100,000 gain over the previous year and
KHJ third.
While Anthony's KNK is proving a winner he is said
to be losing money on his other Los Angeles station KECA.
A short-wave station, said to be the most powerful
in South America, began operation last Saturday. Using a short'
wave of 38. 36 meters, it operated on 7,820 kilocycles with a
twenty-kilowatt power output. Its long wave is 220 meters,
with operation on 1,360 kilocycles and 5 kilowatts power.
Herman Berger, WOR radio engineer has a fifty-watt tube - the
first tube ever used on one of the first stations to go on the
air in theworld - WJZ. The tube was used thirteen £ears ago when
that station was in Newark, N.J.
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8/17/34.
Freeman Gosden, Amos of the radio team of "Amos
'n1 Andy", arrived last Wednesday at Vancouver, B. C. from
Prince Rupert, British Columbia, aboard the steamer Prince
George from Alaska.
A two-way telephone conversation, to be broadcast,
is contemplated with Andy in London, when Amos reaches
San Francisco.
XXXXXXXX
ADVERTISING MEN WOULD CENSOR THEMSELVES
The movement to censor advertising from within the
advertising and publishing circle, to avoid inevitable censor¬
ship from without, due to admitted evils, haa gained great
impetus.
"It is one of the most wholesome and valuable projects
now before the advertising field, "says the Editor and Publisher.
"It comes at a. -time when the Government is actively
espousing the cause of the consumer and when it is closely
inspecting every commercial method with a view to a clean-up
of unfair practices. For a good many years associations of
advertisers, agencies and publications have taken the initia¬
tive to control false, misleading and fradulent advertising.
The principle inside control is as good today as it has ever
been, more workable we believe than any Government control could
be. It is a voluntary censorship, prompted by real desire,
always more effective than arbitrary control.
"Stuart Peabody, former president of the Association
of National Advertisers, and T. K Quinn, of the General Electric
Co. , are urging that a review board be set up within the adver¬
tising and publishing professions to pass on copy. It would
be a board of experts, with power to express approval or dis¬
approval. Mr. Peabody would also have consumer representation.
In the event of an adverse opinion, the media would be called on
to exclude the advertising copy. "
XXXXXXXX
HEARST * S PLANS EXPANDING RADIO INTEREST
Discounting all previous reports, it appears that
William Randolph Hearst is out in earnest at present to build
his own group of stations in important key spots of the country.
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Formerly merely a plaything with Hearst, radio today
is shaping as a very important factor in Hearst' s plans, according
to a Chicago dispatch to Variety.
"In most cities Hearst is using radio as an adjunct
of his newspapers, but there is evidence that Hearst will go
into towns with transmitters where he has no newspaper of his
own, expecting to start his own news-sheet or to make an
alliance with some paper already established.", variety goes
on.
"Hearst now owns or operates seven transmitters
reaching from coast to coast, the more important beins WINS
in New York, WCAE in Pittsburgh, KYW in Chicago, WISN in
Milwaukee, KYA in San Francisco, and two transmitters in
Los Angeles are readying.
"This is the basus from which the new Hearst web
is to rise. KYW moves to Philadelphia in October, returning
to Westinghouse ownership and operation. But it is under¬
stood that Hearst is negotiating to continue operation of
the transmitter in Philadelphia even though he has no news¬
paper in that town.
"Meanwhile Hearst is busy scouting for a station
to replace KYW in this, his second most important strong¬
hold. He made a bid of $100,000 for WCFL, the Labor Station,
but was rejected.
"He negotiated with Ralph Atlass for a possible
takeover of WIND in Gary but nothing came of it. And now
it is reported that has been some dickering with WAAF, a
small low-watter, ompart-time license."
XXXXXXXX
NBC NEW AND RENEWAL ACCOUNTS
*
Renewal -General Foods Corp (Maxwell House Corp)
Thursdays 9:00-10:00 PM EDST 1:00-2:00 AM EDST WEAF WTIC WEEI
WJAR WTAG WCSH WFI WBEN WFBR WOC WHO WOW WDAF WKBF WTMJ WRVA KSTP
WWNC WIS WJAX WIOD WFLA WSM WMC WSB WAP I WJDK WSMB WAVE WKY
WBAP KPRC WOAI KTBS KGO KFI KGW KOMO KHQ KFSD KTAR KGIR KGHL
"Captain Henry's Show Boat."
NEW The Texas Company, October 2, 1934 Tuesdays
9:30-10-200 PM WEAF WEEI WTIC WJAR WTAG WCSH WFI WLIT WFRB WRC
WGY WBEN WCAE WTAM WWJ WSAI WMAQ KSD WHO-WOC WOW WDAF WKBF WTMJ
WIBA KSTP WEBC WDAY KFYR WRVA WPTF WWNC WIS WJAX WFLA-WSUN WIOD
WSOC WAVE WSM WMC WSB WAP I WJDX WSMB KVOO WKY WFAA-WBAP KPRC
WOAI KTBS KTHS KOA KDYL KGO KFI KGW KOMO KHQ KFSD KTAR KGIR KGHL
Ed Wynn, Comedian; Don Vorhees and his 35 niece orchestra.
-12-
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Heinl Radio Business Letter > 1 f j
2400 CALIFORNIA STREET WASHINGTON, C,
\a
CONFIDENTIAL — Not for Publication ,,v
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INDEX TO ISSUE OF AUGUST 21, 1934.
Dill Radio Speech Inquiry Stirs Up Newspaper Rumpus . 2
Jolliffe New FCC Chief Engineer . 5
Broadcasting Stations Must Furnish Names Of Stockholders. . . 6
Commissioner Payne Disavows Censorship . 7
Americans All Ready For Lisbon Technical Conference . 8
Representative Prall Still Laid Up . ..... 8
WSMB Puts Up Stiff Fight To Keep Power Increase . , . 8
FCC Asks ICC To Complete WU Valuation Report . 9
Business Letter Notes . 10
Commission Changes Allocations . 10
Radio History Made By Late Speaker Rainey . 11
Decisions Of The FCC Broadcast Division . 11
No. 751
*
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August 21, 1934
DILL RADIO SPEECH INQUIRY STIRS UP NEWSPAPER RUMPUS
A letter and questionnaire sent out by Senator Dill, of
Washington, on official Senate stationery under Government frank
to all radio stations seeking information as to the probable
demand by stations for news to broadcast, in addition to that
already furnished by the Press-Radio Bureau, has apparently
again started the old row between newspapers and radio stations
over the question of news-broadcasting. Senator Dill explained
the inquiry was made for the purpose of gathering material for
a speech he intended to make next month at the Broadcasters’ con¬
vention but he has been accused by his critics of securing the
information to use in a news venture in which he is personally
interested.
One critic said that the Senator was in some way
identified with the American Newscasting Company, organized for
the purpose of furnishing news bulletin service to broadcasting
stations. Another went so far as to say that Senator Dill had
sought the opportunity to address the Broadcasters and that the
information brought in by the letter and the questionnaire would
really furnish him with the basis for making a decision as to
whether or not he would attempt to organize a radio station news¬
service when his Senate terra expires January 1st,
Senator Dill is reported to have remarked on several
occasions that he believed this offered an opportunity for a
promising new business and it is further said that he remarked
to several persons that he believed he might undertake such a
venture as this rather than seek another term in the Senate,
Senator Dill's circular letter to broadcasters read as
follows:
"On September 17th I shall address the National Associa¬
tion of Broadcasters at Cincinnati, Ohio, on the subject of "News
by Radio". I am anxious to know just what the individual sta¬
tions are doing as to broadcasting news. I am writing you this
letter to ask about your station.
"I have prepared a blank with certain questions for
your convenience, and I would appreciate it very much if you would
do me the favor of answering these questions. Of course, if any
of them ask for information you do not feel free to give or do not
want me to use in a general survey of this subject, I want you to
tell me so.
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"If you have time and are willing, I woUld appreciate
a letter from you also, giving your views and experience as to
the place that news broadcasts have on radio programs.
"Personally, 1 believe the American people waht
flashes and spot news by radio. Since the press associations
refuse to allow the use or sale of their reports* it would seem
the radio stations might well form a great associated radio
service, planned and operated without profit, somewhat after the
Associated Press or the United Press, such organization to be
owned by the stations and managed by directors chosen by them.
"Recent developments of short wave teletype machines
would make it possible to keep down transmission costs and give
exclusive service to stations in the organization.
"Such a service would really be an aid to newspapers,
because the newspaper will always have its field as a journal
and must always be depended upon to give detailed accounts and
to keep permanent records of news events.
"Any comment you can give me on this whole subject, I
shall appreciate. "
The questionnaire attached to Senator Dill's letter con
tained the following questions!
"Does your station broadcast local news? If so f how
often?
"From what source do you secure national and world
news?
"Do you believe news should be sponsored or a station
service not commercialized?
"Do you use press-radio five minute service? Is it
satisfactory? Unsatisfactory? Why ?
"Do you believe your listeners want news by radio?
"Do you think an associated radio news service owned
by the radio stations and run without profit is desirable?
"If you can estimate how much your station could expend
for news service, it would be quite helpful in making this survey
The Editor & Publisher had this, in part, to say about
the proposition:
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"Under G-overnment frank, and with a franked reply
envelope enclosed, Senator C. C. Dill, of Washington, on August
6th, sent a curious and mischievous circular letter to the
various radio broadcasting stations of the country. * * * * *
"Mr. Dill seems to be personally and inordinately
interested in the radio business. He is particularly meddlesome
in reference to news-broadcasting and has private opinions about
it, quite apart from any measured official judgment. Editor &
Publisher learns that Senator Dill is in some way connected with
the American Newscasting outfit of Washington, or expects to be
after he quits his seat. * * * *
* # ■):- * *
"It is a brazen falsehood, of course, that the press
associations 'refuse* to allow the use or sale of their reports.
As everyone, including Senator Dill, knows, they give their
reports to the radio press bureau for transmission under a pre¬
scribed and mutually accepted code, to the public over the air,
an entirely gratuitous service conducted solely in the interest
of the public, because the press has recognized the right of the
people to get certain information by the most rapid means.
"But the imaginative Senator proposes a mutual radio
news association, to compete with the existing press associa¬
tions, setting up a plan which he naturally hopes will be sup¬
ported by the radio concerns. He bases this upon public advant¬
age, but in our view it is a piece of demagoguery of the first
water. Just how the Senator fits into his big idea remains to
be seen. * * * * *
"This man, powerful though he may be, cannot intrude
his personal or official motives to disturb the existing and
satisfactory present relations between radio and press. His
intermeddling does not smack of statesmanship. Keep your eye
on Senator Dill, of Washington.’"
Further the newspaper publication comments:
"There is not unanimity in acceptance of the Press-
Radio report, and several independent news gathering organiza¬
tions have sprung up, for supplying unsubscribing stations with
news. The most formidable of these are Trans-radio Press
Service and the Radio Newscasting Association. "
This was evidently based on the fact that the Trans¬
radio Press Service has announced that it has formed a subsid¬
iary Radio News Association, Inc. , for distribution of news by
short wave radio on a national basis. According to Hubert Moore,
President of Transradio and the new company, Radio News Associa¬
tion is capitalized at $50,000. W. G-. Quisenberry, until recently
with the London bureau of the United Press, is Vice-President and
News Manager of the subsidiary. Otis Peabody Swift, formerly with
the United Press, has been made Sales Director of Transradio.
Mr. Moore also said his organization had made an agreement with
WLS, in Chicago, which included the consolidation of this sta¬
tion's news-gathering corps, consisting of 300 correspondents in
the Middle West.
JOLLIFFE NEW FCC CHIEF ENGINEER
Dr. C. B. Jolliffe was named Chief Engineer, and E. J.
Jett, A. D. Ring, and W. G. H. Finch, Assistant Chief Engineers
at a meeting of the Federal Communications Commission held
yesterday (August 20).
Dr. Jolliffe served as Chief Engineer of the Federal
Radio Commission from March 1, 1930, until it was abolished by
the creation of the Federal Communications Commission July 11,
1934. Since then he has been Chief Engineer of the Communica¬
tions Commission serving on a temporary basis. Dr. Jolliffe is
a Republican.
Dr. Jolliffe was born in West Virginia November 13,
1894, and received his B. S. degree from W. Va. University in
1915, and the degree of M. S. from the same University in 1920.
He received the degree of Doctor of Philosophy (Ph.D. )
from Cornell University in 1922. From 1917 to 1918 and from
1919 to 1920 he was an instructor in Physics at W. Va. University,
and from 1920 to 1922 he was an instructor in Physics at Cornell
University. From 1922 to 1930 he was connected with the Radio
Section, Bureau of Standards. At the Bureau of Standards he was
Assistant Chief of the Radio Section carrying on research on
radio wave propagation and the development and maintenance of
standards of frequency. This work resulted in several scientific
publications.
Dr. Jolliffe was given credit for the success of the
Fourth Annual Convention of the Institute of Radio Engineers,
of which he was Chairman, held in Washington in 1929. Dr.
Jolliffe was named Chief Engineer of the Federal Radio Commission
March 1, 1930. Before and since then he has attended several
International Radio Conferences as one of the American delegates
or as an expert adviser.
Dr. Jolliffe is a member of Phi Beta Kappa and Sigma Xi.
He is a Fellow of the Institute of Radio Engineers and a Fellow
of the American Association for the Advancement of Science.
For several years Mr. Ring was Senior Engineer in the
Broadcast Section of the Federal Radio Commission and Mr. Jett
was an Assistant Chief Engineer.
Mr. Finch has been Chief Engineer of the American Radio
News Corporation (Hearst) and has been a Consulting Engineer in
New York. He holds several patents on tele-typewriting.
V. Ford Greaves, who has been an Assistant Chief Engi¬
neer, was transferred to San Francisco to serve in the Field Force,
All the other engineers who were employed by the
Federal Radio Commission were re-employed on a permanent basis
and several of them were given promotions.
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8/21/34
Paul Lion, of Charleston, S. C. , James P. Buchanan, of
Texas, and B. J. Shimeall, of the Bureau of Aeronautics, were
added to the Engineering Staff.
Col. Davis Arnold was transferred from the Veterans'
Bureau to the Commission' s Law Department at the same grade and
salary.
All the other employees of the Commission who have been
serving on a temporary basis were placed on a permanent basis.
XXXXXXXX
BROADCASTING- STATIONS MUST FURNISH NAMES OF STOCKHOLDERS
The Broadcasting Division of the Federal Communications
Commission has ordered all broadcasting stations, if a corporation,
to submit a list of stockholders and the amount of stock held by
each and if a partnership or other than a corporation, a list
of persons owning any interest therein. Under the old Radio
Act, it was said at the Commission, there could be a dummy hold¬
ing company and the actual owners need not be revealed.
The order issued was as follows:
"Pursuant to the provisions of the Communications
Act of 1934, IT IS ORDERED, that the licensees of all radio
broadcast stations (including all special or general experimental,
visual broadcast, relay broadcast or broadcast stations) shall,
on or before September 1, 1934, file with the Commission verified
statements showing the following information, as of July 15, 1934:
"1. If the licensee is a corporation -
a. A list of the stockholders of record, together
with the address and the amount of stock held
by each;
b. Whether the stock is voted by a person other
than the record holder, and if so, copy of the
agreement or other instrument authorizing same;
c. A list of the officers and directors of said
corporation, together with their addresses and
the amount of stock held by each;
d. Any other arrangement or agreement with any
person or corporation which may affect the
conduct or control of the business of the
licensee corporation.
1
8/21/34
"2, If the licensee is a partnership, association,
organization, or company (other than a corporation)
a, A list of the persons or corporations owning
any interest therein, the amount of interest
held by each person or company, and their
addresses ;
b. A list of the officers and directors, and
their addresses.
"IT IS FURTHER ORDERED, that the licensee shall inform
the Commission of any changes subsequent to July 15, 1934, in
the ownership of stock in the licensee corporations (or of the
issuance of additional shares of stock and to whom issued), or
any changes in the ownership of licensee-partnerships, associations,
organizations or companies. "
XXXXXXXX
COMMISSIONER PAYNE DISAVOWS CENSORSHIP
George Henry Payne, Vice Chairman of the Telegraph
Division, Federal Communications Commission said in his radio
address Tuesday night (Aug. 21) that "he could not conceive
that radio censorship would be possible in the United States. "
Commissioner Payne made this statement over the NBC
network in an interview with Martin Codel, radio writer. "There
is nothing in the law that would permit it", the Commissioner
said. "It is impossible to conceive that the American people
would tolerate censorship either of the press or of radio - in
the latter case, at least, insofar as freedom of responsible
expression is involved. As I say, we must respect the opinions
of those whose fears are prompted by a conscientious vigilance,
we need not be disturbed by those who are uneasy over what never
will happen and never can happen. "
In opening the program, four messages to Commissioner
Payne to illustrate the various forms of communication which
come under the jurisdiction of the new Federal Communications
Commission, were read. By way of illustration he received and
read a telegraph message from U. S, Senator Hiram Johnson, of
California, a radiogram from Jesse I. Strauss, United States
Ambassador to France, who was on the high seas, a cablegram via
submarine cable from Robert W. Bingham, United States Ambassador
to England, and a message carried by ship and international
radio telegraphy from Senatore Marconi, who was aboard his yacht
on the Adriatic Sea.
XXXXXXXX
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AMERICANS ALL READY FOR LISBON TECHNICAL CONFERENCE
Those who are to represent this country at the confer-
ence on technical questions of the International Radio Advisory
Committee to be held in Lisbon, Spain, Sept. 22 have gone over
their program thoroughly. The preparation of material for the
twenty-five questions on the agenda is reported to be well in
hand. Also the commercial companies interested have been heard.
The International Radio Advisory Committee was establish¬
ed by the Washington Radio Conference in 1927 and reestablished
by the Madrid Conference in 1932. It is a body to which the
international radio conferences refer their more technical
questions.
XXXXXXXX
REPRESENTATIVE PRALL STILL LAID UP
Representative Aiming S. Prall, of New York, who is
supposed to be slated for the Communications Commission, and
Senator Robert F. Wagner, of New York, who were injured in an
automobile collision sometime ago, are still out of commission.
Mr. Prall is in a hospital on Staten Island where he was taken
in an ambulance after the accident, and Senator Wagner is in the
home of the doctor who treated Messrs. Prall and Wagner at
Westport, N. Y. , near the seene of the mishap.
X X X X X X X
WSMB PUTS UP STIFF FIGHT TO KEEP POWER INCREASE
Strong arguments were advanced at a hearing this morn¬
ing (Tuesday, August 21) by Station WSMB, New Orleans, through H.
Wheelahan, its manager and others, to retain an increase to 1000
wTatts power granted by the Commission. Station WADC, of Akron,
Ohio, which broadcasts simultaneously on the same frequency as
WSMB had protested against the increase.
It was contended the use of additional power interfer¬
ed with the Ohio station and reduced its service area. The actual
separation between the stations, Ralph Walker , Examiner, who heard
the case said, is 920 miles and that generally required for similar
stations is 1000. Mr. Walker said he hoped to be able to make
his recommendations in the case within the next two weeks.
XXXXXXXX
8
8/21/34
FCC ASKS ICC TO COMPLETE WU VALUATION REPORT
The Federal Radio Commission has issued the following
order requesting the Interstate Commerce Commission to complete a
tentative valuation report of the Western Union:
"WHEREAS of the Communications Act of 1934 provides
that the Interstate Commerce Commission, if requested to do so
by the Federal Communications Commission, shall complete at the
earliest practicable date such valuation of properties of carr¬
iers subject to this Act as are now in progress, and shall there¬
after transfer to the Federal Communications Commission the
records relating thereto;
"WHEREAS, the Interstate Commerce Commission now has in
progress a valuation of the properties of Western Union Telegraph
Company and its subsidiaries and affiliates commenced under the
Interstate Commerce Act prior to the amendment thereof by the
Communications Act of 1934;
"WHEREAS, the Federal Communications Commission deems
it necessary and desirable that such valuation of the properties
of Western Union Telegraph Company and its subsidiaries and
affiliates should be completed by the Interstate Commerce Commis¬
sion; and
"WHEREAS, under the provisions of the Communications
Act of 1934 the Federal Communications Commission has jurisdiction
to make a valuation of all or of any part of the property owned
or used by any carrier subject to this Act; now therefore,
"IT IS ORDERED, That the Chairman of the Federal Com¬
munications Commission is hereby authorized to request the Inter¬
state Commerce Commission to proceed with and complete such
valuation of the properties of Western Union Telegraph Company
and its subsidiaries and affiliates up to and including a tenta¬
tive valuation report of such carrier and its subsidiaries and
affiliates, which tentative valuation report shall be made con¬
formable to the provisions of law in Section 213 of the Communica¬
tions Act of 1934, and thereupon to furnish the Federal Communica¬
tions Commission with a duly authenticated copy thereof together
with all records relating thereto;
"IT IS FURTHER ORDERED, That such tentative valuation
report shall thereafter be served by the Secretary of the Federal
Communications Commission in similar manner to that provided in
the Interstate Commerce Act, Section 19a, paragraph Fifth (h) for
the service of tentative valuations; and
"IT IS FURTHER ORDERED, That thereafter the Federal
Communications Commission shall receive, if tendered within 30
days, exceptions and objections to said tentative valuation
report, and briefs in support of such exceptions and objections,
and shall hear oral argument of parties to said proceeding and
shall thereafter fix the final valuation of said carrier and its
subsidiaries and affilaites.
X X X X X X X —9—
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8/21/34
rBUSINESS LETTER NOTES
Harvey Hoshour, General Solicitor of the American
Telephone & Telegraph Company, will be among the speakers at the
annual meeting of the American Bar Association at Milwaukee,
Monday (Aug. 27). John W. G-uider, of Washington, Chairman of
the Committee on Communications of the Bar Association, will
later preside at the open meeting where Mr. Hoshour, probably
W. M. M. Splawn, of the Interstate Commerce Commission, and per¬
haps another speaker on communications are to speak, and which
will be resolved into a general discussion of the subject of com¬
munications.
The American section of the International Committee on
Radio will hold a reception and dinner at the University Club
in Washington tonight (Tuesday, Aug. 21) to honor the new Federal
Communications Commission. Senator Wallace White, of Maine,
President, is expected to preside, it was announced by William R.
Vallance, Chairman of the Executive Committee.
The Jenny Wren Co., of Lawrence, Kans. , operators of
radio station WREN , this week filed a petition in the District
Supreme Court to restrain the Federal Communications Commission
from enlarging the operating hours of WHB, which operates in
Kansas City.
Technical advancements in a new series of radio and
phonograph instruments soon to be announced will be outlined to
radio service engineers in Washington and vicinity at a meeting
tomorrow night (Wednesday, Oct. 22) at 8 P.M.
Engineers connected with the R. C.A. Victor Co. and the
R. C.A. Radiotron Co. will discuss the developments.
XXXXXXXXX
COMMISSION CHANGES ALLOCATIONS
The Federal Communications Commission approved the follow¬
ing change in Rule 229:
'’4395 kc. , change service allocation from 'fixed
service' to 'general communication service.'
"4570 kc, change service allocation from 'general com¬
munication service' to 'fixed service'.
8/21/34
’’4575 kc. , change service allocation from 'general com¬
munication service' to 'fixed, service'.
"4690 kc. , change service allocation from 'general com¬
munication service' to 'fixed, service'."
XXXXXXXX
RADIO HISTORY MADE BY LATE SPEAKER RAINEY
The late Henry T. Rainey made radio history while he
occupied the Speaker's rostrum in the House of Representatives.
Early in his term as Speaker, he broke all precedents, according
to a National Broadcasting Company statement, by permitting NBC
to broadcast from the floor of the House for the first time in
the history of Congress a debate and vote on a major measure.
This historical occasion was on the afternoon of March
9, 1933, when the House met in a special session called by
President Roosevelt to deal with the banking crisis. Speaker
Rainey had given permission to broadcast the opening ceremonies,
but with definite instructions that broadcasting should cease
when the business session got under way.
"NBC announcers and engineers remained at their posts
after going off the air to listen to the debate on the bill which
was to bring about the reopening of the banks of the country.
Sensing the importance of the occasion, an NBC official sent a
note to Speaker Rainey, asking permission to open the microphones.
"Sure, go ahead!" was his smiling reply", the NBC statement con¬
tinues.
"Both NBC networks were quickly brought together and
within a few minutes the National Broadcasting Company began the
exclusive broadcasting of one of the most exciting and important
events in the history of the country. The nation' s radio audience
heard the complete debate and the record of the vote on the
measure, the first time that the proceedings of the House on a
pending measure ever had been broadcast in their entirety. 11
XXXXXXXXXX
DECISIONS OF THE FCC BROADCAST DIVISION
The following applications were granted by the Federal
Communications Commission Broadcast Division August 21st:
WJEJ, Hagerstown Broadcasting Co. , Hagerstown, Md. ,
C.P. to move transmitter locally in Hagerstown; KG-IX, J. M. Heaton,
Las Vegas, Nev, , modification of C.P. to make changes in equipment
extend commencement dite to Oct. 2, and completion date to Dec. 2;
11 -
8/21/34
KQ,W, Pacific Agricultural Foundation, Ltd., San Jose, Cal.,
modification of C.P. to change equipment and extend commencement
date to Nov. 1, 1934 and completion date to Jan. 1, 1935; KJBS ,
Julius Brunton & Sons Co. , San Francisco, Cal. modif iciation of
C. P. to change equipment and extend commencement date to Nov. 1,
1934 and completion date to Jan. 1, 1935; KW CR , Cedar Rapids
Broadcast Co., Cedar Rapids, la., modification of C.P. to change
equipment and extend commencement date to Nov. 1, 1934, and com¬
pletion date to Dec. 1, 1934; WMAQ, National Broadcasting Co. ,
Inc., Chicago, Ill., modification of C.P. extending commencement
date to Oct. 4 and completion date to Dec. 4, 1934; WTOC , Savannah
Broadcasting Co., Inc., Savannah, Ga. , license covering installa¬
tion of temporary transmitter to be employed while construction
of new permanent transmitter 1260 kc. , 100 w. , unlimited; KEX,
Oregonian Publishing Co. , Portland, Ore. , license covering local
move of transmitter and changes in equipment, 1180 kc. , 5 KW siraul.
D, S-KOB night.
Also, WDAS , WDAS Broadcasting Station, Inc. , Philadelphia,
Pa. , license covering move of transmitter and studio locally and
installation of new equipment (which was formerly equipment of
WPEN) , 1370 kc. , 100 w. 250 w, LS, unlimited time; KSO , Iowa
Broadcasting Co., Des Moines, la., license covering new equipment
and changing frequency and power, 1320 kc. , 250 w. , 500 w. LS-
unlimited; NQBC, Delta Broadcasting Co. , Inc. , Vicksburg, Miss. ,
modification of license to change hours of operation from specified
to daytime, station operates on 1360 kc. , 500 w. night, 1 KW, LS;
W1XG, General Television Corp. , Boston, Mass. , license (Exp. Visual
broadcasting) 42000-56000, 60000-86000 kc. , 500 watts; W8X0 , The
Crosley Radio Corp. , Mason, Ohio, renewal of license (Exp. Spec.
Exp.) 700 kc. , 50000 watts, 1 to 6 A.M. EST.
Miscellaneous
New, Atlantic Broadcasting Corp. , New York City, applica¬
tion for new general experimental station heretofore granted, was
retired to closed files for want of prosecution; KSD , Pulitzer Pub¬
lishing Co. , St. Louis, Mo. , permission granted to withdraw protest
to the granting of application for a new station at Staunton, Va. ;
New, Tri-State Radio, Inc., Washington, Pa., application for new
station, heretofore set for hearing, was dismissed without prejud¬
ice; KGVO , Mosby's Inc., Missoula, Mont., Spec. Exp. Auth. 950 kc. ,
500 w. , unlimited application heretofore set for hearing, was dis¬
missed at request of applicant; KSTP , National Battery Broadcast¬
ing Corp. , St. Paul, Minn. , hearing on application for modifica¬
tion of license continued at request of applicant for period of 30
days from Sept. 7, 1934, the date to be fixed by Docket Section;
WLBF, WIjBF Broadcasting Co. , Kansas City, Mo. , denied petition to
intervene in hearing upon application of WHB for special experi¬
mental authority; New, Samuel Nathaniel Morris, Stamford, Tex. ,
application for new station to operate on 1200 kc. , 100 w. unlim¬
ited time, again designated for hearing upon issues shown in the
bill of particulars in the case dated today.
X X X X X X
12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
„£&AL UtK'.!1
CONFIDENTIAL- Not for Publication
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INDEX TO ISSUE OF AUGUST 24, 1954.
Radio-Optics Dependent Upon Technical Advances . 2
Commission To Mark Time Until After Labor Day . . . 4
Communications Commissioners Timid Before Microphone . 5
Believe Radio Manufacturers1 Code In The Bag . 6
Henry Bellows Resigns From Columbia . 7
Thirty-Six Thousand Sets Month's Exports . 7
Communications Industry Watches Rayburn Speaker Race . 8
Telephone Division Passes On Routine Matters Only . 8
Questions Radiotelegraph License Holders. . 9
Code Administrator To Speak At Cincinnati... . . . 10
WGN To Have Half-Million Dollar Studio . . . 10
Relation Of Sound Absorption To Material Studied . 10
Amusing Comparison Made Between BBC And Our System . ..11
New Applications Granted By Telegraph Division . . . 12
No. 752
August 24, 1934
RADIO-OPTICS DEPENDENT UPON TECHNICAL ADVANCES
The latent possibilities of the radio-optical waves,
those which range from 1 centimeter to 1 meter in length, are most
promising, but their fuller realization is conditioned on continued
technical advances, in the opinion of W. D. Hershberger, Associate
Physcist at the Army Signal Corps Laboratories at Fort Monmouth,
N. J. "If the progress made during the past 5 years is indicative
of what may be expected in the future, the field will assume an
increasing importance", Mr. Hershberger explains. "The use of
radio-optical equipment for portable beacons for aircraft, for
limited range directional signaling in all varieties of atmospheric
conditions, as well as other uses which suggest themselves, can
readily be forseen.
"The reason for the popular interest arises partly from
the experiments of Marconi whose international fame assures any
project associated with his name wide publicity, and partly from
the fact that many people link television, if and when it leaves
the laboratory, with the new communication channels being made
available. "
"Claims made for these channels include freedom from
static, fading, and skip-distance effects. "
It is possible to build a directional radiating system
for use at these wavelengths which is small enough to be portable
and at the same time may be pointed in any direction.
"An efficient use is thus made of power, and some degree
of secrecy is attained since transmitter and receiver must be pro¬
perly lined up", Mr. Hershberger continues.
"We should, however, not be misled about the number of
new channels thus made useful in the radio-optical region. It is
true that in the limited range between 1 and 10 centimeters we find
7,000 times as many channels as in the entire broadcast band. How¬
ever, simultaneous use of such channels by apparatus in close
proximity presupposes means for stabilizing frequency which are at
present totally lacking. Non-interference in this region will per¬
haps depend not so much on the existence of a hoot of new channels
no one will be able to utilize with present-day technique, as on
the fact that limited ranges and beam transmissions are employed.
Yet, if broadcasting at considerable power is done as is proposed
by television engineers, the whole region may readily become con¬
gested. In such a case, the prime need would be means for
stabilizing frequency and receiving equipment capable of distinguish¬
ing between neighboring frequencies. In the absence of such a
technique, it is futile to speak of new channels.
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"Occasionally the suggestion is made that radio-optical
equipment could well replace telephone lines or cables. For
single- channel operation in one direction at a time such equipment
would no doubt be quite successful, although possessing the dis¬
advantage that, if intermittent operation is all that is desired,
it would be necessary that the detectors and receiving amplifiers
be kept in operation continuously to permit calling at any time
with consequent battery and tube upkeep. "
A commercial link operating on 18 centimeters has been
in use for some time across the English Channel for intercommunica¬
tion between the airports Lympne and St, Inglevert. In particular
the purpose of this installation is the prompt handling of informa¬
tion on the departure and arrival of civil aircraft. The receiving
apparatus works directly into printers at each end and of course
may be used for voice. Simultaneous operation in both directions
is secured by duplication of all apparatus with one set working
at 17 centimeters and the other at 17.5 centimeters. The link
has been in experimental operation since 1931. Parabolic mirrors
10 feet in diameter are used to concentrate the radiation. These
mirrors are supported by towers 66 feet high on the French side
and given an elevation of 43 feet on the English side so as to
afford an unobstructed line of sight between stations. This
installation marks perhaps the first commercial use of radio¬
optics.
In Germany, Hollmann and his group report ranges of the
same order of magnitude as those obtained by Marconi.
Uda, in Japan, obtained ranges of 30 kilometers at 50
centimeters as early ae 1930. The Japanese appear to prefer
magnetrons for generation of radio-optical waves and antenna arrays
to mirrors for concentrating the radiation.
The Westinghouse Co. displayed a novel piece of radio-
optical equipment at the "Century of Progress" in Chicago. The
generator of oscillations was their half-watt, 9-centimeter magnetron
suitably modulated with voice or tone. The receiver employed a
crystal detector for demodulation of the 9-centimeter waves. A
24-inch mirror served to concentrate the waves. In the demon¬
stration for the public, voice transmission from one balcony to
another was shown as well as reflection of the waves from a plane
metal mirror. An engineer speaking for the company describes this
apparatus, reports that a range of 1 mile has been obtained, and
that ranges of the order of 20 miles are anticipated in the future.
"Mention must be made of the work of Radio Corporation
of America radio tron engineers who, by decreasing in proportion
the dimensions of all electrodes, have produced the 'acorn' or
'shoe-button* tube", Mr. Hershberger concludes. "The time of
electron transit has been reduced in these tubes to the extent
that they are used as oscillators in conventional circuits at
30 centimeters and as r-f amplifiers at 1 meter with a gain of 4
per stage. The tubes are too small to permit sufficient plate dis¬
sipation for the generation of much power but they promise a great
deal as amplifiers and detectors. "
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8/24/34
COMMISSION TO MARK TIME UNTIL AFTER LABOR DAY
Witli most of the Commissioners out of town for some
reason or another, the Communications Commission is not likely to
act upon any important matters until after Labor Day, September 3rd.
Chairman E. 0. Sykes has gone to Mississippi for the primaries.
In the absence of Col. Thad Brown, Acting Chairman, who is on a
vacation at Swampscott, Mass. , Judge Sykes did not appoint an
Acting Chairman, but simply asked Commissioner Hampson Gary, who
is to remain in Washington, to "pinch hit" for him, if necessary.
Paul Spearman, General Counsel of the Commission, and
George H. Hill, an Examiner, both natives of that State, have
likewise gone to Mississippi. There is a close contest for
Senator down there between Senator Hubert D. Stephens and former
Governor Theodore G. Bilbo. Although all those from Mississippi
on the Communications Commission are said to favor Senator Stephens,
however, it is a difficult position for Judge Sykes because it was
Governor Bilbo who appointed him a Justice of the Supreme Court of
Mississippi, and it was Senator Stephens who had him appointed to
the Radio Commission. This is only the second visit to Mississippi
of Judge Sykes since his appointment to the Commission seven years
ago. The primaries will be held Tuesday, August 28th.
Commissioner Paul A. Walker has again returned to his
home in Oklahoma. This time he hopes to bring his family back
with him to Washington and establish his residence in the Capital.
Commissioner Norman S. Case will probably make a short
visit to Providence and Commissioner George Henry Payne to New York.
These absences were made possible, it was said at the
Commission, by the fact that most of the appointments at the Corn-
mission have been made, such as Chief Engineer, General Counsel,
etc. , and because the other employees of the old Radio Commission
have now been placed upon a permanent basis with the new organiza¬
tion. Many guesses have been made as to the probable appointees
of Assistant Counsels, Examiners, and others, but it is likely
that these appointments also will go over until after Labor Day.
XXXXXXXXX
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8/24/34
COMMUNICATIONS COMMISSIONERS TIMID BEFORE MICROPHONE
Apparently not warned in advance that they were to go
on the air at the dinner of the American Section of the Inter¬
national Committee on Radio, in Washington, last Tuesday night,
members of the Federal Communications Commission proved so shy
that William R. Vallance, of the State Department, and John W,
Guider, in charge of the affair, had a difficult time filling out
the half-hour NBC had allotted to them. Two of the Commissioners,
Case and Stewart, when introduced, simply got up and bowed, which
didn’t mean much to the invisible audience. One of the Commis¬
sioners later in the evening was lulled completely to sleep by
a technical address.
Judge Sykes, Chairman of the Commission, was the only
Commissioner who made a real speech. He said he was delighted
with the personnel of the new Commission and that they all had
but one idea which was - adequate communications at reasonable
rates.
The Judge told of a conversation he had with President
Coolidge when the latter appointed him to the Commission.
"Mr. President", Judge Sykes said, addressing Mr.
Coolidge, "I want to tell you very frankly I know nothing about
radio. In fact, I have never even owned a radio set. I am just
a plain country lawyer and I don’t know whether or not I can
make good on the Radio Commission. "
11 1 knew you were a lawyer", the late President replied.
"There are others on the Commission who know about radio. I
thought it would be a good idea to put on one lawyer to keep them
straight. "
Judge Sykes said that the Radio Commission had been
reversed almost less than any other Commission in the Federal
Government.
In introducing Commissioner Gay, Mr. Vallance recalled
the time when Mr. Gary was the American Consul at Cairo in Egypt.
This brought to his mind an incident which occurred at the time
the Foreign Service Act was passed. Each American Consul was
advised of this by cable and told to take the oath in the presence
of the American Ambassador.
"At that time I was in Mexico", said Mr. Vallance, who
is now in charge of the radio treaty work in the State Department,
"and there was a mistake in transmitting my message so that it
read that I was ’to take a bath in the presence of the American
Ambassador. ' "
Dr. J. H. Dellinger, of the Bureau of Standards, told
of the work to be done by the International Radio Technical Com¬
mittee at Lisbon next month.
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F. P. Guthrie read a report from Lloyd Sprague, of the
RCA, who was an unofficial observer at the Warsaw Radio Conference.
Among other things Mr. Sprague sent to Mr. Guthrie a supplementary
report of 41 printed pages in Polish with the comment to Guthrie,
"If you find anything in this which I may have failed to see, you
might let me know. "
John W. Guider told of the work of the Radio Committee
of the American Bar Association meeting which is to be held in
Milwaukee next week.
xxxxxxxxxx
BELIEVE RADIO MANUFACTURERS’ CODE IN THE BAG
Although their Code Committee, of which Capt. William
Sparks, of Jackson, Mich. , is Chairman, has nothing to say except
that the negotiations are proceeding satisfactorily, it has been
learned on good authority that the radio manufacturers will be
granted a separate code. At present they are operating under the
Electrical Industry Code,
A public hearing was held recently at which Captain
Sparks, Bond Geddes and others connected with the Radio Manu¬
facturers, put up a stiff fight for a code of their own. This
was vigorously opposed by representatives of the National Electri¬
cal Manufacturers' Association. Since then, however, conferences
were held in Washington, one on August 8th, and the other August
21st, in Washington with the report that an agreement has been
reached satisfactory to the radio manufacturers. If the decision
stands, an announcement is expected to be made next month.
President Leslie F. Muter has called an RMA Board meet¬
ing in New York City on September 12th to discuss Code develop¬
ments. A meeting also will be held by Chairman Powel Crosley,Jr.
of the Committee considering the "Five Point" national radio pro¬
motion project and conferences held with representatives of the
Radio Wholesalers' Association in its further development.
XXXXXXXX
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8/24/34
HENRY BELLOWS RESIGNS FROM COLUMBIA
Considerable surprise was caused by tlie resignation of
Henry A. Bellows as Washington’s resident Vice-President of
Columbia. No reason for the break was forthcoming either from
Mr. Bellows or Columbia. One theory advanced was that it was
due to a misunderstanding which arose between Mr. Bellows and
Edward Klauber, Vice-President of Columbia, in charge in New York
while William S. Paley, President, was on the West Coast.
Harry Butcher, General Manager of WJSV, Columbia sta¬
tion in Washington, who has been connected with the organization
for a number of years, will take over Mr. Bellows' duties. In
the meantime, the latter, has gone over to the National Association
of Broadcasters.
"Mr. Bellows has volunteered his services in connection
with the October 1st educational-religious stations hearing before
the Federal Communications Commission", Philip G„ Loucks, Manag¬
ing Director of the Association said. "He will remain in
Washington and has agreed to devote his time chiefly to the
preparation of the case on behalf of the broadcasting industry
before the Federal Communications Commission. The availability
of Mr. Bellows' services to the Association during the present
emergency period is welcomed by the industry, and as Chairman
of the NAB Legislative Committee he has been active in all legis¬
lative matters affecting broadcasting for the last seven or eight
years. "
XXXXXXXXX
THIRTY-SIX THOUSAND SETS MONTH'S EXPORTS
Radio exports during June, 1934, totaled 36,372 sets
valued at $942,153, and 470,638 tubes valued at $231,479, accord¬
ing to the monthly report of the Bureau of Foreign and Domestic
Commerce.
Also during June there were exported 11,094 loud speakers
valued at $22,257, receiving set components and accessories
valued at $427,924, and transmitting sets, tubes and parts valued
at $73,179.
XXXXXXXX
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8/24/34
COMMUNICATIONS INDUSTRY WATCHES RAYBURN SPEAKER RACE
A suggestion ventured in this letter at the time of
Speaker Rainey's death that Representative Sam Rayburn, of Texas,
co-author of the Communications Act, and Chairman of the Committee
which will have jurisdiction over the Act in the House, would
doubtless be a candidate for Speaker, has been quickly borne out
by Mr. Rayburn’s announcing his candidacy.
An Administration stalwart, Rayburn nevertheless voted
"wrong" on at least one measure - the bonus - as did Representa¬
tive Bankhead, another announced candidate.
Although the White House is not expected to chastise
either for this, neither is the President expected to tread on
the feelings of other $100 per centers".
Nevertheless, it is known that Representative Rayburn
stands very high with President Roosevelt personally and handled
much of the President’s recovery legislation in the last Congress
including the Stock Market Control and Securities Bill. Also he
was the President’s right hand man in putting through the Com¬
munications Bill.
Vice President G-arner and Rayburn both being from
Texas, in the opinion of some, might raise the question of "too
much Texas" if the latter were from Texas. Incidentally two
members of the Communications Commission are from Texas - Cary and
Stewart, the latter supposed to be a Rayburn appointee.
Other observers have suggested that Rayburn might be
groomed for leader, on a ticket with Byrns as Speaker, while
others have intimated the claims of North and West must be given
greater recognition.
In case Representative Rayburn were elected Speaker,
Representative Ceorge Huddleston, of Alabama, Clarence F. Lea,
of California, Robert F. Crosser, and Parker Corning, of New York,
would be in line to succeed him as Chairman of the House Inter¬
state Commerce Committee.
X X X X X X X X
TELEPHONE DIVISION PASSES ON ROUTINE MATTERS ONLY
No business of importance was transacted at the meeting
of the Telephone Division of the Federal Communications Commission
last Wednesday. It was said that only routine matters had been
passed upon.
XXXXXXXXXX
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8/24/34
QUESTIONS RADIOTELEGRAPH LICENSE HOLDERS
Explaining that large numbers of persons held such
licenses and that it was necessary to see whether really using
all of the channels was a necessity, the Telegraph Division of
the Federal Communications Commission passed the following
resolution:
"Pursuant to Section 308 (b) of the Communications Act
of 1934, IT IS ORDERED that every radiotelegraph common carrier
(except those operating exclusively in Alaska) which holds a point-
to-point telegraph station license in the fixed public service,
or in the fixed public press service, shall file a supplementary
statement with each application for renewal of license for the
next license period only, showing:
(a) The name of the organization operating the other end
of each circuit designated in the license sought to be
renewed and (to the best of applicant's information
and belief) its relation to other communications oper¬
ating or holding companies in the same country and any
affiliation which it may have with any communications
operating or holding companies or administrations in
other countries.
(b) the number of paid words of public correspondence trans¬
mitted during the month of July, 1934, to each point
specifically designated in the license sought to be
renewed..
(c) The name of each point of communication specifically
designated in the license sought to be renewed to which
no paid words of public correspondence have been trans¬
mitted during the license period, prior to the date of
this order.
(d) the name of each point of communication specifically
designated in the license sought to be renewed, to which
paid correspondence wastransmitted at some time during
the license period but to which no such paid correspon¬
dence was transmitted during the month of July, 1934.
(e) the reason for not handling paid words of public corres¬
pondence with each point that may be listed under (c)
or (d) above.
(f) the reason for desiring to continue inactive points of
communication in the license.
"IT IS FURTHER ORDERED that the aforementioned common
carriers shall at the same time file an additional statement show¬
ing the number of paid words of radiotelegraph correspondence
received by them in the United States during the month of July,
1934, from each fixed point outside the United States from which
messages are received. "
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8/24/34
CODE ADMINISTRATOR TO SPEAK AT CINCINNATI
The latest addition to the speaker's list at the
annual meeting of the National Association of Broadcasters at
Cincinnati is Sol A. Rosenblatt, Division Administrator of the
NRA, in charge of the Broadcasters' Code. Mr. Rosenblatt will
speak Tuesday afternoon, September 18th.
Another speaker, just announced, is Fred Willis, of
the executive office of Columbia in New York, who is to talk
Wednesday on the subject of "Widening Horizons - A Conception
of the Opportunities, Responsibilities and Problems of Education
by Radio. "
Following the Monday afternoon session, there will be
a stag party in the competent hands of Power Crosley, Jr.
The terns of the Directors - Bellows, Craney, Damm,
Ryan, Hedges and Myers - expire at this time.
xxxxxxxx
WON TO HAVE HALF MILLION DOLLAR STUDIO
A half-million dollar studio is to be built for Station
WON, owned by The Chicago Tribune, according to a dispatch from
that city. The structure, of Bedford stone and Gothic architecture,
will rise just north of the present Tribune tower.
It will be three stories as the first section of a 24-
story building, and will contain a theater seating 600, three
other studios, a music library, sound effect rooms, property
rooms, reception and rest rooms for artists and musicians, man¬
agers' offices, clients' rooms, etc. The project will be com¬
pleted by next June.
XXXXXXXX
RELATION OF SOUND ABSORPTION TO MATERIAL STUDIED
The August number of the Journal of Research contains
a report of work on sound absorption where a large area of absorb'
ent material is installed on one surface of a room. Under these
conditions it is impossible to obtain a logarithmic decay as is
usually assumed in the derivation of reverberation formulas.
As a result of this nonlogarithmic decay the sound
absorption is less than would be expected from the absorption
coefficient determined when using an area of 72 square feet.
Curves are given showing these results. One measurement was
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8/24/34
taken on an installation in a large room which showed that the
results were similar to those obtained in the reverberation room.
Measurements were also taken on very small areas. In
this case the absorption was more than would be expected from
the absorption coefficient determined by measuring the absorption
of an area of 72 square feet. Curves are given showing that the
total absorption is not proportional to the area of the material.
Measurements were also made on one installation where the acousti¬
cal material was installed in small panels. In this case it was
again found that the absorption agreed with that measured on
similar areas in the reverberation room.
X X X X X X X
AMUSING COMPARISON MADE BETWEEN BBC AND OUR SYSTEM
A humorous article, "Daffodils On The Air" appears in
the Saturday Evening Post of this week (August 25th) written by
Joseph Hergesheimer, noted novelist, describing the workings of
the British Broadcasting Corporation. Mr. Hergesheimer frequently
compares the British radio system with ours and although he
apparently makes every effort to be neutral, certainly the United
States gets none the worst of it.
The writer starts out by telling the difficulties he
had renting a radio set in London and immediately after he had
turned it on, the following happened:
"An ending strain of music was replaced by the most
delicately modulated Oxford voice, the most nectarean human tones,
I had ever heard falling from the air. ’The concert1, listeners
were informed, 'will be interrupted for a needed rest and tuning.
There are no soloists to help them. It won't be very long and
then we'll go on again,'
"In the United States I had often thought enviously of
the programs transmitted by radio over England, the undivided
authority exercised by the British Broadcasting Corporation. Lis¬
tening to the advertising that had made the American air so extrava¬
gantly audible, I longed for musical hours not constantly inter¬
rupted by the platitudes of corporation heads, economic and fin¬
ancial argument. How pleasant it would be, my thoughts continued,
to enjoy actually good music, the resources of eminent scientists,
a new form of serious drama, all day, or nearly all day, for days
without end. I even spoke, more or less vaguely, about the great
superiority of the English system to our own. "
Mr. Hergesheimer, however, soon changed his mind about
this. One of his conclusions was:
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"The whole problem of public entertainment, the differ¬
ent attitudes behind British and American broadcasting, filled
my mind. One conclusion, at least, was plain - the English plan
would be impossible for America, the American would never work
in England. In England there were not enough rich national firms
to make actual a program supported by advertising.
"The English, at heart, disliked and distrusted
advertising, the art of putting forward an article or an individ¬
ual; it was still difficult, after three times there, for me to
find a hatter. No more famous hats existed, but the name above the
door was so obliterated by age, the shop windows so unobtrusive
with a row of gentlemen’s hats out of the past, that I invariably
went by the shop one way or the other. Yes, advertising was
primarily the property, a characteristic energy, of the United
States. "
An especially amusing paragraph in Mr. Hergesheimer ' s
article was when, for the first time, he located Paris on the
dial of his set.
"A nationally minded Frenchman was talking with a
vigorous and clear articulation", Mr. Hergesheimer wrote. "He
spoke French, I thought, with unnecessary ease. I listened while
the Frenchman kept on and on; at the half-hour there was a
remote jingling of bells that he paid no attention to. Determined
to accompany his speech to its end, I lighted an especially long
cigar. With the cigar nearly burned to an ash, I turned him off;
he had already spoken with an increasing satisfaction for an hour
and thirteen minutes. "
XXXXXXXXX
NEW APPLICATIONS GRANTED BY TELEGRAPH DIVISION
August 22 - University of Washington, Seattle, Wash.,
C.P. for new station, 2398, 3492.5 kc. , 5 watts; City of Cambridge,
Cambridge, Mass., C.P. 30100, 33100, 37100, 40100, 86000-400000,
401000 kc. and above, 50 watts power; Same - Portable & Mobile
11 applications, same except 9 watts power; Skagit County (State
of Wash.), Mt. Vernon, Wash., C.P. for new station, 2414 kc. ,
50 watts,
XXXXXXXX
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2400 CALIFORNIA STREET
WASHINGTON, D. C.
C O N F I D E N T I A L - Not for Publication
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INDEX TO ISSUE OF AUGUST £8. 1934.
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7\8^|lp|H!l2|lj2|3i4ig|f}
G-ary Scorches Senator Schall On Censorship . . .
Radio Survey Public Business, Says Dill .
NBC Official Suggested As Spanish Ambassador .
Business Letter Notes .
Commission More Explicit Regarding Ownership Data....
Marconi Seeks To Solve Television With Micro-Waves. . .
Sees Communications Touching Life Of Everyone .
Applications Granted By Broadcasting Division .
.2
.4
.5
.7
.8
. 9
10
11
No. 753
August 28, 1934
GARY SCORCHES SENATOR SCHALL ON CENSORSHIP
In the past it has been possible for almost anybody to
walk all over the Radio Commission and get away with it, but
judging from the hefty swing Hampson Gary, Acting Chairman of
the Communications Commission took at Senator Schall, of Minnesota,
over Columbia last Friday night, things may be different with the
new crowd.
Commissioner Gary, at the drop of the hat, not only
countered on Senator Schall’ s allegation that the Commission was
to be a part of a vast government controlled press and radio news
service, but resenting the further remark Schall made against
President Roosevelt declared:
"I don’t have to tell you that the President has no
such thought in mind as a censorship of the press or radio", Mr.
Gary declared. "If any recommendation of that kind ever reached
him, it would meet his instant disapproval. "
Harry C. Butcher, Columbia Manager in Washington, said
that Gary, although a novice at broadcasting and having had
little or no time for preparation, "stepped up to the microphone
and delivered his speech like Hitler. "
Commissioner Gary began by quoting Senator Schall’ s
assertion that had caused the rumpus, which was:
"The 'brain trust’ is preparing a recommendation to the
Roosevelt Communications Commission, providing for a national
press service patterned after the Tass of Soviet Russia, the
Havas of France, and the Stefani of Italy. This service is to
take the place of the Associated Press, the Hearst News Services,
and the United Press. It will be operated on the taxpayers'
money, and will have exclusive use of all government news and be
in a position to give its service only to those newspapers loyal
to the Roosevelt dictatorship;
^'The present plan is to make a small charge for the ser¬
vice, but consideration is being given to a suggestion that loyal
administration newspapers be furnished the news service free.
This plan is essential for the passage of the press censorship
bill to be offered at the next session of Congress because
censorship will cause the suspension of the present news services. "
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To this Mr. Gary replied, in part, as follows:
"I wonder which of his colleagues Senator Schall thinks
would offer such a bill to the next Congress. And I wonder fur¬
ther who he thinks among the 96 Senators and 435 Representatives
would vote for such a measure if it were introduced, in view of
the Constitutional provisions regarding the liberty of the press.
"No, the government is not going into the newspaper
business. It is satisfied with the methods, processes and results
of the activities of the great agencies which gather and dis¬
seminate the news. Incidentally, it would make no difference if
the government were not so satisfied, for nowhere in the govern¬
ment does there reside the power to set up such an agency as the
Minnesota Senator suggests.
"It was startling news to the great press associations
mentioned by Senator Schall that they were about to be put out of
business. Senator Schall' s charges were apparently news to the
broadcasting companies also. A press association which made an
inquiry of me stated:
"'Senator Schall was given time on the Columbia hookup
at his own request. When officials of the network saw the advance
manuscript of his speech, they expressed considerable surprise,
but allowed the address to go on the air without change. '
"Now, the Senator says the 'brain trust' is preparing
a recommendation to the Communications Commission. As acting head
of that body, I can assure him no member of it has ever heard of
any such proposal.
"On first hearing, the Senator's utterances seemed to
be so imaginary, it was a question as to whether they deserved
serious consideration, but after all, when a Senator of the United
States makes such an announcement to the vast audience which
listens in on the radio, that audience is entitled to be informed
of the real facts. "
Whereupon Mr. Cary quoted from President Roosevelt's
recent statement that the government had never subsidized a news¬
paper or press service and predicted that it never would.
"Recently, I was asked this question", the Commissioner
continued.
"'Do you believe, Commissioner Gary, that radio should
be maintained as a free American enterprise, as free as the Press?'
"I replied:
" ' Absolutely. *
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"I am sure you will wait with impatience for Senator
Schall to let us know the source of his incredible statement
about press and radio censorship", Commissioner Gary said in con¬
clusion, "and it would add further to the general information on
the subject if he would tell us why he did not obtain authentic
confirmation of it before he broadcast such an absurdity to the
people of the United States. "
X X X X X X X X
RADIO SURVEY PUBLIC BUSINESS, SAYS DILL
Senator Clarence C. Dill, of Washington, told the
Editor & Publisher in an interview that he "can’t understand why
Editor & Publisher and the damn newspapers are getting so excited
over radio news broadcasting. " He defended his use of the
Senatorial franking privilege in mailing a questionnaire to 600
radio stations seeking information for a speech on the news
broadcasting situation which he is to make in Cincinnati at the
Broadcasters' convention next month. Mr. Dill retires from poli¬
tics in January and may start a radio news bureau.
"Senator Dill also revealed for the first time that he
had protested to Paul Mallon, author of a syndicated Washington
political comment column against a recent column in which Mallon
said a certain far west Senator and his former secretary are in
hot water. Mallon said they had invoked the ire of Secretary
Ickes by purported profiteering in lands to be benefited by the
building of a government dam", the Editor & Publisher continued.
"'I wrote Mallon', Dill said, 'that some of my friends
thought he was talking about me and that if he meant me I want
to know who were his informants so I can start a few libel suits.
I sent Mallon a copy of an anonymous letter written to me from
Washington on Press Club stationery saying that Mallon was privately
saying he meant me and my former secretary, but Mallon denied the
whole thing.
"'He said he had been handed a statement and didn't
know who was meant by the inference. I also wrote Ickes and he
wrote that he knew nothing about it in connection with me. It's
not my honesty that I'm worried about because I know that's all
right. I am bothered that anyone would think I could be so
politically dumb. 1
"Speculation has been rife in the state of Washington
as to who Mallon meant in his column which incidentally was pub¬
lished by the Portland Oregonian but omitted by Spokane, Seattle
and many other State papers. Some newspapermen went so far as to
comment privately that whomever was intended will soon be a dead
issue in the political arena and that any other national venture
by such an individual would be ' tremendously handicapped. '
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"'Mallon, said "a far west Senator"', so it might be
some one in Montana or Colorado or Nevada who was buying up land
to be increased in value by the building of a government dam. '
"'Certainly I used my Senatorial frank in sending
letters to the radio stations', the Senator said. 'I thought it
was public business, which has never been defined, and I am still
of that opinion. I may want to offer an amendment to the Com¬
munications Bill, on which there may be a special reason, or I
may want to make a speech in the Senate as well as before the
National Association of Broadcasters. Who is competent to ques-
tion that belief except the Postmaster General? He has made no
protest. The charge that I used my frank to further information
for private use is trifling and insincere. '
"'The explanation for the criticism at this time lies
in the fact that Roy Howard fears that I may start a radio news¬
gathering service which would compete with his organization. I
may do that.
"'But why all the excitement? The newspaper contest
with the radio isn't over news, it's over advertising. Early
returns on my questionnaire show many stations aren't satisfied
with the five minute broadcast. They want fifteen minutes.
That will only help the newspaper, I honestly believe, because
people will want to get a newspaper for the details. Leased
wire charges now make news too expensive for the ordinary sta¬
tion, A radio newsgathering organization will only be made pos¬
sible through the use of short waves. I think the only news
stories the radio stations want are running accounts of outstand¬
ing events and flashes on spot news. ' "
XXXXXXXX
NBC OFFICIAL SUGGESTED AS SPANISH AMBASSADOR
In Juan de Jara Almonte, its night general manager at
Radio City, who supervises all night programs, NBC has an official
whose diplomatic ability is becoming more and more apparent.
After seeing him in action, a Washington visitor was so impressed
by the tact and dispatch with which Mr. Almonte handled things
that he said:
"Senor Almonte would be a very good Ambassador to
Spain for the United States. "
The Washingtonian was evidently quite serious about
the suggestion and said that he proposed keeping it in mind the
next time there was a vacancy at Madrid. Almonte was born in
Paris of Spanish parents and has been with the National Broad¬
casting Company seven years.
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Another observer impressed by Mr. Almonte's diplomacy
in handling the thousand and one troublesome problems in the vast
NBC studios each night, Samuel Kaufman, characterized him as
the "Diplomat on the Kilocycles" and wrote in the New York Sun:
"It was Almonte's ability to cope with emergencies
diplomatically that got him his present job.
"He was born in Paris of Spanish parents and joined
the NBC sales staff seven years ago after traveling to various
parts of the globe in numerous occupations. As a radio time
salesman he desired to study his product first hand and made a
habit of visiting the studios at 711 Fifth Avenue every night.
It was not long before the entire studio staff began to turn to
him for unofficial advise on sudden problems.
"The big decision that assured NBC heads of Almonte's
rare diplomacy was made during the presidential campaign of 1928.
Former Gov. Alfred E. Smith was making an address in Newark which
was scheduled to precede NBC's biggest sponsored program. A
group of distinguished visitors was invited to attend the studio
presentation that night and had already arrived. A few minutes
before the scheduled studio feature was to start, word came that
Smith was going to talk overtime. The problem that worried the
studio staff was whether to cut off Smith or cancel the studio
program.
"Ordinarily, the studio program would be canceled. But
a delicate situation was involved in turning away the assembled
celebrities without their seeing the anticipated broadcast.
"Production men, announcers and page boys ran en masse
to Almonte. He gave them his decision instantly.
"'Do both', he said. 'Keep Smith on the air and pro¬
ceed with the studio program. But don't put the studio feature
on the air. Present it before dead mikes for the benefit of the
invited guests. ' They followed his advice.
"The next day Almonte received a memo to report to the
office of George B. McClelland, then Executive Vice-President and
General Manager of the network. Almonte half expected a calling
down for his advice, and he left the office as night studio
executive with the long and imposing title of "Assistant to the
Vice-President and General Manager. " With the removal to Radio
City and the succession of Richard C. Patterson, Jr. to the
Executive Vice-Presidency, Almonte's designation was altered to
"Evening General Manager. "
"Almonte, as an evening general manager of the National
Broadcasting Company, has full supervision of all night-time pro¬
grams. He has complete charge of personnel and artists. The
responsibility for the safety and entertainment of thousands of
visitors is vested in him. None of these executive duties, how¬
ever, has made him as well known in broadcasting circles as his
assignment as official greeter and host to distinguished visitors. "
X X X X X X
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BUSINESS LETTER NOTES
The same day that Gen. Hugh S. Johnson left a White
House conference and resigned as Administrator of the NRA and
was persuaded by President Roosevelt to reconsider and continue
A. Cloyd Gill, news commentator announced the fact on his broad¬
cast over the ABS-WMCA network, according to an American Broad¬
casting System statement. "This was last Monday evening, exactly
one week before the news was released in Washington", the state¬
ment continued.
"Mr. Gill, who is an economic writer and former Washing¬
ton newspaper editor, predicted on the air last Tuesday that the
bank interest rate would have to be reduced. Two days later the
National City Bank and the Bank of Manhattan, two of the largest
financial institutions in the world, reduced their rates. "
Observers in the Capital are inclined to think perhaps
Representative Sam Rayburn, of Texas, made a bid for the Speaker-
ship with a view to shrewd bargaining in the finals.
"We're playing one night stands", remarked Frank Wisner
as the FCC Press Room was again moved last week. This time it is
back on the 7th floor in Room 7230.
A. D. ("Jess") Willard, Jr., formerly Sales Manager of
WJSV in Washington, has been appointed Assistant Manager by
Harry S. Butcher, Manager of the station.
Evidently the radio industry regard the efforts of the
Committee of Five for the Betterment of Radio (Rudy Vallee,
Richard Himber, Guy Lombardo, Abe Lyman and Paul Whiteman) as a
publicity stunt for said five. The latest assertion of the self-
appointed Committee is that the singers of indecent songs have
been on the smaller stations. They now say they don't believe
the songs of the major networks ever needed any censoring.
XXXXXXXXXX
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COMMISSION MORE EXPLICIT REGARDING OWNERSHIP DATA
The Broadcasting Division, of which Harapson Gary is
Chairman, today (Tuesday) adopted an amendment clarifying its
Order approved August 21, 1954, so there will be no doubt as to
the classes of stations which are required to submit information
regarding stock ownership, etc. The amended order also grants to
stations additional time in which to file the information.
The Amendment, and Order as amended, follow:
" It is ordered, that Order No. 2 of the Broadcasting
Division, adopted on August 21, 1954, be amended by striking the
language in the first six lines of the first paragraph thereof and
substituting in lieu thereof the following:
11 ’Pursuant to the provisions of Section 510 (b) of the
Communications Act of 1954, It is ordered, that the licensees of
all broadcast stations, broadcast-pickup stations, experimental
broadcast stations, experimental visual broadcast stations, experi¬
mental relay broadcast stations, or general or special experimental
stations carrying on the experimental transmission of any kind of
broadcast programs, or general or special experimental stations
engaged exclusively in research concerning the development of
apparatus for any of the aforementioned classes of stations,
shall, on or before September 15, 1954, file with the Commission
verified statements showing the following information, as of July
15, 1954. ’
‘so that the said order when so amended will read as follows:
’’’Pursuant to the provisions of Section 510 (b) of the
Communications Act of 1954, it is ordered, that the licensees of
all broadcast stations, broadcast-pickup stations, experimental
broadcast stations, experimental visual broadcast stations,
experimental relay broadcast stations, or general or special
experimental stations carrying on the experimental transmission
of any kind of broadcast programs, or general or special experi¬
mental stations engaged exclusively in research concerning the
development of apparatus for any of the aforementioned classes
of stations, shall, on or before September 15, 1954, file with
the Commission verified statements showing the following informa¬
tion, as of July 15, 1954:
”*1. If the licensee is a corporation -
a. A list of the stockholders of record, together
with the address and the amount of stock held by
each;
b. Whether the stock is voted by a person other than
the record holder, and if so, copy of the agree¬
ment or other instrument authorizing same;
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c. A list of the officers and directors of said
corporation, together with their addresses and
the amount of stock held by each;
d. Any other arrangement or agreement with any person
or corporation which may affect the conduct or
control of the business of the licensee corporation.
"'2. If the licensee is a partnership, association, organiza¬
tion, or company (other than a corporation) -
a. A list of the persons or corporations owning any
interest therein, the amount of interest held by
each person or company, and their addresses;
b. A list of the officers and directors, and their
addresses.
"It is further ordered, that the licensee shall inform
the Commission of any changes subsequent to July 15, 1954, in the
ownership of stock in the licensee corporations (or of the issuance
of additional shares of stock and to whom issued), or any changes
in the ownership of licensee-partnerships, associations, organiza¬
tions or companies.
"The Secretary is hereby instructed to furnish appropri¬
ate forms for the furnishing of the information above ordered. "
At the suggestion of Hampson Gary, Acting Chairman of the
Federal Communications Commission, the following Minute was adopted:
"It is ordered that Commissioner Norman S. Case be, and
he is hereby, assigned temporarily as a member of the Broadcast
Division of the Commission, to serve in the absence of Commissioner
Thad H. Brown of said division until the return of Commissioner
Brown, under the authority of Section 5 (a) of the Communications
Act of 1954. »
XXXXXXXXXX
MARCONI SEEKS TO SOLVE TELEVISION WITH MICRO- WAVES
After Senator Marconi had navigated his yacht "Electra"
by wireless, off the coast of G-enoa, he flew to London and secreted
himself in his British laboratory at Clemsford. As nothing could
be learned there, the Genoa correspondent of The Morning Post was
asked to find out from the inventor's entourage at Genoa the cause
of the master' s flight. The correspondent sent the following word:
"A member of his staff said that the problem is to get waves
of sufficient radius to send a picture from one side of the world
to another. This means transmitting at least 500,000 light points
a second. Micro waves can do it, and Senator Marconi hopes to
overcome certain technical difficulties connected with the appli¬
cation to television in a very short time.
" television has now reached a stage when the object to be
transmitted is projected by means of a photographic lens onto a
screen divided into thousands of minute squares', said a member of
his staff. 'The squares, sent through to the receiving station,
are collected on another screen in the order of their transmission.
XXXXXXXXX - 9 -
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SEES COMMUNICATIONS TOUCHING LIFE OF EVERYONE
There is not a man, woman or child anywhere in the
United States whose welfare and future are not going to be
affected by the work of the Communications Commission, George
Henry Payne, of New York, Communications Commissioner declared
in a radio interview.
"There are approximately 125 millions of people in the
United States", Mr. Payne said. "In the year 1932 they held
25,500,000,000 telephone conversations and sent 148,000,000 wire
telegrams and millions more of wireless messages. It is estimat¬
ed that there are 18,000,000 or more radio sets in use in this
country. Assuming that each set is available to five persons,
almost 100,000,000 persons have the opportunity of listening
to us tonight - not to say to others who are probably more edify¬
ing and more entertaining’
"I realize, of course, that there are many people whose
conception of our Commission is that it is a body interested
primarily in the question of rates and charges and in regulat¬
ing and controlling the practices that result from uncontrolled
competition. These matters, assuredly, are all important. But
in every case their regulation by the government has arisen, it
was because, back of the need for regulative laws, there was a
demand by the people that inventions or developments which affect
their lives deeply should have, not only governmental supervision,
but also governmental assistance and cooperation.
"Communication between human beings began in the dim
past of the human race. Although paleontologists differ by such
trifles as fifty or a hundred thousand years as to when it hap¬
pened, it was approximately two hundred and fifty thousand years
ago when the so-called great progenitor of the human race, known
as pithecanthropus erectus, the first animal to have human
qualities, raised itself on its hind legs on the Island of Java,
probably to reach for food - but just as probably to communicate
with members of his, or its family. "
"But what of the future of communications?" the inter¬
viewer inquired.
"Who knows? If the future growth is as remarkable as
the past growth has been, man’s imagination is unable to grasp
the possible developments to come. In view of all that has hap¬
pened in the last few years, we are apparently prepared to
receive without astonishment the news that regular communication
has been established with Mars, or with some other place aren
more remote.
- 10 -
■
8/28/34
"I am told that a brilliant American business man and
leader of communications, David Sarnoff, has prophesied that the
time is coming when you will look at your wrist-watch and, by the
manipulation of a spring, be able to telephone your wife that you
cannot come home to dinner, speaking into a tiny mouthpiece via a
private ultra-short radio wave. "
"In just what way can the government help communica¬
tions, Mr. Commissioner?" Mr. Payne was asked.
"The business of all government is to help, not hinder",
he replied. "An understanding of the needs of the people, a little
imagination, a disposition to be fair and just - all these things,
of course, are necessary for the proper administration of any law.
Correcting abuses is only a small part of administration. Further¬
ing the ideals of the people and carrying out their aspirations
are the major part. "
"Then you of the Commission aren't going into your work
as wielders of the big stick, as your old friend Theodore Roose¬
velt put it", Mr. Payne was asked.
"No thinking American would take from any person what
is rightly his, or from any group of persons the credit and
profit that properly belong to them for their vision, courage
and perseverance", the Commissioner answered. "But the great
mass of the people are inarticulate in many ways - and they are
the government that very properly can further and advance pro¬
jects that would be useless without their assistance.
"Of course, our duty is to guard against malefactors,
and we shall. At times, it is true, the government in exercising
its regulative powers, may seem severe. At times it should be
severe. But if you examine the history of our country for the
last 150 years, you will find that it has never been a government
of oppression. It has made mistakes, but the mistakes were
always those of men eager to accomplish the greatest good for the
greatest number. "
XXXXXXXXX
APPLICATIONS GRANTED BY BROADCASTING DIVISION
August 28 - KLZ, The Reynolds Radio Co. , Inc. , Denver,
Colo., modification of C.P. approving transmitter location and
extending commencement and completion dates to Oct. 1, 1934, and
Jan. 30, 1935, respectively; WCRW, Clinton R. White, Chicago, Ill. ,
C.P. to install new equipment; KIEV, Cannon System, Ltd., Glendale,
Cal., modification of C.P. to change equipment and change commence¬
ment date to Sept. 1, and completion date to Nov. 30, 1934; WNEL ,
Juan Piza, San Juan, P. R. , modification of C.P. to change pro¬
posed transra. site locally; extend commencement date to 5 days
from date and completion date to 60 days thereafter.
11
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Q
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8/28/34
Also, WWRL, Long Island Broadcasting Corp. , Woodside, N.Y. ,
license, 1500 kc. , 100 w. , 250 w. LS, specified hours; WFEA, New
Hampshire Broadcasting Co. , Manchester, N. H. , license covering C.P.
1340 kc. , 500 w. , unlimited; WKBV, William 0. Knox, d/b as Knox
Battery & Electric Co. , Richmond, Ind. , voluntary assignment of
license to Knox Radio Corp.; KSO, Iowa Broadcasting Co., Des Moines,
la. , authority to determine operating power by direct antenna
measurement; KXL , KXL Broadcasters, Portland, Ore. , license cover¬
ing C.P. 1420 kc. , 100 w. LS, shares KBPS; WALA, Pape Broadcasting
Corp., Inc., Mobile, Ala., license covering C.P. 1380 kc. , 500 w. ,
unlimited; KOIL, Mona Motor Oil Co. , Council Bluffs, la. , modifica¬
tion of C.P. approving transmitter site, and extending commencement
to Nov. 1 and completion date to Jan. 30, 1935; New. S. H. Patterson
Portable, C.P. for temporary broadcast pickup service; 2000, 2190,
2830 kc. , 40 watts; W1XAV. Shepard Broadcasting Service, Quincy,
Mass. , renewal of special experimental license, 61500 kc. , 100
watts; KGBU, Alaska Radio & Service Co. , Inc. , Ketchikan, Alaska,
license covering move of station locally, 900 kc. , 500 watts,
specified hours.
Miscellaneous
WLLH , Albert S. Moffat, Lowell, Mass., granted modifica¬
tion of C.P. to move transmitter locally in Lowell, Mass.; WBNX,
Standard Cahill Co. , New York City, granted permission to withdraw
application in Docket No. 2467 without prejudice, and granted
continuance of 30 days of hearing scheduled for Sept. 5th; KGHI,
Loyd Judd Co. , Little Rock, Ark. , hearing scheduled for August 29th,
continued for 60 days; KTUL. Tulsa Broadcasting Co., Inc., Tulsa,
Okla. , granted 30-day continuance of hearing set for August 30th;
Unity School of Christianity. Kansas City, Mo. , cfenied petition
requesting reconsideration and grant of application for new
experimental broadcast station; also denied right to protest
grant of application of First National Television, Inc.
The following applications, heretofore designated for
hearing, were dismissed at request of applicants:
New. Harold E. Smith, Rensselaer, N. Y. , C.P. for new
station, 1370 kc. , 100 watts, unlimited time (facilities WGLC);
WBZA. Westinghouse E. & M. Co. , Boston, Mass. , special experimental
authority 990 kc. , 1 KW, unlimited time when synchronized with
WBZ with option of transmitting dissimilar programs over WBZA
daytime up to 1 hour before sunset; WKEU , Radio Station WKEU,
LaGrange, Ga. , C.P. to move station to Chattanooga, Tenn. , change
frequency to 1370 kc. , and hours of operation to daytime.
XXXXXXXX
12
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL - Not for Publication
S VICE PRE8l3f 'tT A tiO ..
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INDEX TO ISSUE OF AUGUST 31, 1934.
Buqy Time Ahead For Broadcasters At Cincinnati Convention. ... 2
American Portugal Radio Delegation Sails Sept. 12th . 3
Mussolini Decorates Communications Officials . . . 4
Says Public Opinion Only Will End Radio Exploitation. ........ 5
Amateur Station Licenses Take A Jump . . . 6
Will Have To Do It All Over . . . 6
A. T. & T. Will Cooperate Without Quibble, Hoshour Declares.,?
Peebles Acting Communications Code Administrator. ............ 8
•—Broadcasters Back Attorney General In Composers Suit. . 9
Telephone And Telegraph Division Meetings Cancelled . ....11
Farnsworth Television Demonstrated In Philadelphia . 11
German Post Office Speeds Up Television . 12
No. 754
>
August 31, 1934.
BUSY TIME AHEAD FOR BROADCASTERS AT CINCINNATI CONVENTION
The program for the National Association of Broadcasters'
Convention at Cincinnati beginning Monday, September 17th and con¬
tinuing through Tuesday and Wednesday, promises to keep everyone
well occupied. A session devoted to a discussion of the Broad¬
casters’ Code will follow Thursday.
Outstanding speakers include Hampson G-ary of the Com¬
munications Commission; Senator C. C. Dill; Judge Ewin Davis, of
the Federal Trade Commission; Sol A. Rosenblatt, of the NRA;
H. J. Quilliam, Seattle, and Fred Willis, Columbia Broadcasting
System, New York.
Monday morning’ s session includes an Address of Welcome
by Hon. Russell E. Wilson, Mayor of Cincinnati; Address of
Alfred J. McCosker, President of the National Association of
Broadcasters; "News by Radio", Hon. C. C. Dill, U. S. Senator
from Washington; "What is Ahead of the New Federal Communications
Commission?", Hon. Hampson Gary, Chairman, Broadcast Division;
"Radio and Human Liberty", William Hard, writer and radio com¬
mentator, Washington, D. C. ; and Appointment of Committees.
Monday Afternoon: Report of the Managing Director,
Philip G0 Loucks, NAB, Washington, D. C. ; Report of Legislative
Committee, Henry A. Bellows, Chairman; Report of Engineering
Committee, Joseph A. Chambers, Chairman, Crosley Radio Corpora¬
tion, Cincinnati, Ohio.
Tuesday Morning: "The Advertiser Builds a Program",
H. J. Quilliam, Fisher's Blend Station, Inc., Seattle, Wash.;
Report of Commercial Committee, Arthur B. Church, Chairman,
Midland Broadcasting Co. , Kansas City, Mo. ; Report of Committee
on Cost Accounting, H. K. Carpenter, Chairman, Radio Air Service
Corporation, Cleveland, Ohio; Report of Tax Committee, E. M.
Elkin, Chairman, Westinghouse Electric & Manufacturing Co. ,
Pittsburgh, Pa.
Tuesday Afternoon;- A Resume of Code Administration,
John Shepard, 3rd, Chairman, Code Authority for the Radio Broad¬
casting Industry; "Radio Advertising and the Federal Trade Com¬
mission", Hon. Ewin L. Davis, Federal Trade Commission, Washing¬
ton, D. C. ; "Coordinating America's Amusement Industries", Sol A.
Rosenblatt, Division Administrator of the National Recovery
Administration, Washington, D. C. ; Report of Nominating Committee
and Election of Officers.
Tuesday Night:- Annual Banquet.
2
8/31/34
Wednesday Morning; "Widening Horizons - A Conception
of the opportunities, responsibilities and problems of Education
by Radio", Fred Willis, Executive Office, Columbia Broadcasting
System, New York City; Report of Program Committee, Edgar L.
Bill, Chairman, Peoria Broadcasting Co. , Peoria, Ill. ; Copyright
Division, Report of Oswald F. Schuette, Copyright Advisor of the
NAB, Washington; Report of I. D. Levy, Treasurer of NAB, Phila¬
delphia, Pa. ; Report of J. C. Hostetler, Copyright Council,
Cleveland, Ohio.
Wednesday Afternoon: Report of Resolutions Committee;
Installation of Officers and Adjournment.
The NAB Championship Golf Tournament will be held Sunday
at Twin Oaks Country Club, Latonia, Ky.
XXXXXXXXX
AMERICAN PORTUGAL RADIO DELEGATION SAILS SEPT. 12TH
The American delegation to the conference of the CCIR
(Comite Consul tatif International Radiocommunications), Technical
Consulting Committee on radio communication, will sail from New
York on the S. S. "Manhattan" Wednesday, Sept. 12th. It was
originally planned to hold the conference at Lisbon, Portugal,
beginning September 22nd, but it is now scheduled to take place
at Estoril, fifteen miles away. The delegation as announced by
the State Department follows:
Dr0 J. H. Dellinger, Chairman, Bureau of Standards,
Department of Commerce; Mr. G. C. Gross, Federal Communications
Commission; Maj. Roger B. Colton, Signal Corps, U. S. Army;
Capt. Stanford C. Hooper, U. S. Navy, and Mr. W. Vallie Whitting¬
ton, Treaty Division, Department of State.
Others who will attend the Conference will be J. C.
McNary, Technical Director, National Association of Broadcasters;
Lloyd Briggs, of the RCA, London office; Lloyd Espenschied, A. T. &
T. Co. ; R. A. Heising, Bell Telephone Laboratories; K. B. Warner,
and James J. Lamb, American Radio Relay League, and Paul Golds-
borough, Aeronautical Radio, Inc.
Dr. Dellinger said that it had been decided to discuss
the following subjects at the Portugal Conference:
Organization Regulations of the C. C.I.R. ; Participation
of international organizations in the C. C.I.R. ; Working of a
Mobile station accurately on the frequency of land station;
Technical basis of allocation of bands of frequencies; Mitigation
of harmonics in radio transmission; Reduction of electrical inter¬
ference; Selectivity and frequency stability of radio receivers;
High-frequency calling frequencies; Modulated telegraph trans¬
mission.
3
8/31/34
Also, Mitigation of key clicks in radio telegraph
transmission; Standard frequency transmissions; Measurement of
telephone noise and voice levels; Radio telephony between small
ships and land stations; Telephony with moving trains; Coordina¬
tion of fixed-station radio telephony and wire telephone system;
Methods of measuring radio field intensity and noise; Synchroniza¬
tion of broadcast stations; Frequency separation between broadcast
stations,.
Also, Efficacy of directive antennas (150 to 1500 kc) ;
Efficacy of "anti-fading" antennas; Broadcasting by single side¬
band; Study of wave-propagation curves; Measurement of trans¬
mitter spectra; Revision of earlier C.C.I.R. opinions; Character¬
istics of arc transmitters.
The International Radio Consulting Committee (C.C.I.R.)
was established by the International Radio Conference of Washing¬
ton, 1927, and reestablished by the International Telecommunica¬
tions Conference of Madrid, 1932. Its function is to advise the
radio administrations of the world on technical radio questions
which are submitted to it. The general objective of its work is
the reduction of radio interference. It is made up of representa¬
tives of the governments and of the radio operating companies.
The next International Radio Conference will be held in
Cairo in 1937.
XXXXXXXX
MUSSOLINI DECORATES COMMUNICATIONS OFFICIALS
Among the Americans who were given high decorations by
Premier Mussolini as the result of the assistance they gave to
the flight last year of Gen. Italo Balbo, were a number of well-
known communications officials. Sosthenes Behn and Ellery Stone
of the International Telephone & Telegraph Co. were created
grand officers of the Crown of Italy, the same decoration as
conferred upon Secretary of the Navy Swanson, and Chief of Staff,
Gen. Douglas Mac Arthur.
Among those named commanders of the Crown of Italy are
H. H. Buttner, International Telephone & Telegraph Co. and Capt.
Pilade Leoni, International Telephone & Telegraph Co.
The following were made chevaliers of the Crown of Italy:
T. E. Nivison, Mackay Radio; John A. Bossen, Mackay
Radio; 0. W. Lee, Mackay Radio; Edward Thorburg, International
Telephone & Telegraph Co. ; T. M. Powers, Postal Telegraph Co. ;
C. W. Oran, Postal Telegraph Co. ; M. H. Aylesworth, President of
the National Broadcasting Co. ; Stanley E. Hubbard, Station KSTP,
St. Paul, and Floyd Gibbons, radio commentator.
X X X X X X X
- 4 -
8/31/34
SAYS PUBLIC OPINION ONLY WILL END RADIO EXPLOITATION
Advocating that the American Bar Association seek
action by the Communications Commission in securing more time on
the air for discussing public questions, the Committee on Ameri¬
can Citizenship, of which Representative James Beck, of Pennsyl¬
vania is Chairman, took the broadcasting companies severely to
task for "wasting the benefits of the radio in giving too much
time to trivial entertainments and more or less commercial
advertisements. " It is the opinion of Representative Beck and
his Committeemen that this "commercial exploitation" will never
change until required to do so by public opinion.
The reference to radio in the report follows:
"The first objective of your committee was to devise
a plan to revive interest which, in the earlier days of the
Republic, was taken by the American people in the Constitution.
To this end it was decided to make an attempt to interest the
press and the broadcasting companies in giving space and time to
the education of the American people as to the merits of their
form of government. The committee Chairman did take up this
matter with several of the broadcasting companies, and was en¬
abled on the occasion of the John Marshall celebration on Febru¬
ary 4, to pay a tribute to him in a nation-wide broadcast. Some
of the speeches of the various celebrations of John Marshall Day
may have had a local broadcast.
"Your committee believes that this Association can
render an effective service in impressing upon the national
broadcasting companies that they should not only be a free and
open forum for public discussion, but also that they ought not
to waste the infinitely potential benefits of the radio in giving
too much time to trivial entertainments and more or less com¬
mercial advertisements. The radio is possibly the greatest gift
to mankind in its cultural possibilities. It is potentially a
university of the people, and its results could be of immeasur¬
able advantage, not merely in the education of the people but in
the maintenance of democratic institutions. However, this
potentially beneficent asset is largely used as a means of private
profit through commercial exploitation, and this will never
change until public opinion requires the owners of the broadcast¬
ing companies to give more attention to educating the people and
less to amusing them or advertising merchandise.
"The newly created Federal Communications Commission,
with its supervisory power over the channels of the air, and the
rightful use of them by its licensees, should consider this
matter. It could profitably ask one or more of the larger
broadcasting companies to give one hour, on two evenings of the
week , for the discussion of public questions. As our nation
5
8/31/34
largely functions through two great political parties, it might
be well to give one hour each week to the proponents of govern-
mental policies, and one hour to opponents. This would insure a
balanced discussion, and the forum of the air might well become
as significant as was the forum in the times of the Roman
Republic. Cicero addressed thousands, but the radio has a
nightly audience of millions. Such an opportunity to educate
our electorate of many millions should not be wasted.
"Such weekly discussion of current problems, especially
in their constitutional aspects, by opposing schools of political
thought, would do much to educate the American people, and soon
would take the form of a continuous debate which might well
interest the American people far more than the debates in
Congress.
XXXXXXXX
AMATEUR STATION LICENSES TAKE A JUMP
Evidencing the ever widening interest in amateur
radio throughout the United States and its territories, records
just compiled by the Federal Communications Commission disclose
that there were 46,390 radio stations operated by amateurs in
the fiscal year just ended.
During the year - 8,782 new station licenses were
issued.
XXXXXXXX
WILL HAVE TO DO IT ALL OVER
Judge E„ 0. Sykes, Chairman of the Federal Communica¬
tions Commission, and Paul D. P. Spearman, G-eneral Counsel, may
have to make another trip to their native State of Mississippi,
September 18th for the run-off contest for Democratic Senatorial
nomination between Senator Stephens and former Governor Bilbo,
as neither of the contestants received a majority.
Judge Sykes and Mr. Spearman strongly supported Senator
Stephens who was largely responsible for their appointments to
the Commission.
XXXXXXXX
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8/31/34
A. T. & T. WILL COOPERATE WITHOUT QUIBBLE, HOSHOUR DECLARES
The attitude of the Bell System Companies toward the
new Federal Communications Commission and any investigation it
proposes to make, will be that of active cooperation, Harvey
Hoshour, General Solicitor of the American Telephone & Telegraph
Company, told the American Bar Association in session at Milwaukee.
Mr. Hoshour said:
"If ever there has been a corporation publicly owned
by the American people, the American Telephone and Telegraph
Company is that corporation, and I believe it a fair statement
that no business corporation in this or any other country has
ever been so widely and so generously entrusted with the funds of
the people generally. The Bell System Companies have wanted the
confidence of the American people. I believe they have deserved
that confidence, and I believe by and large they have that con¬
fidence today to a degree that has been seldom, if ever, equalled
under anything like similar circumstances. "
"Regulation by public service commissions is not new
to the Bell System Companies. The Bell System Companies have
not opposed regulation, but on the other hand have been permitted
to and have developed under regulation. We are not among those
who believe that public regulation of utilities has broken down
or failed. All in all we feel that regulation has been a success
rather than a failure. When the Federal Communications Act was
proposed, the Bell System did, it is true, strengously object
to certain of the provisions contained in the bills submitted,
but we did not and have not at any time opposed Federal regula¬
tion of our companies as to those matters which are properly and
appropriately subject to that regulation.
"We propose to give the Commission without quibble or
cavil whatever information as to our business it may desire.
Right now the Bell System Companies are engaged in preparing
information that the new commission has asked be submitted to it
on September 1st, and still other information which the Commission
has asked be submitted on September 15th; and I might add that
a very considerable portion of our personnel is being used to
get this information together for the commission in time to be
filed as requested. "
"One of the orders issued by the new Commission on
which our people are now gathering information has to do with
matters involved in the complaint recently made to the National
Recovery Administration by one of the telegraph companies that
certain of the practices of this company and of other companies
which furnish telegraph facilities or do a telegraph business were
unfair", Mr. Hoshour continued. "While the Bell System Companies
have voluntarily filed a code applicable to all of their employees
under the Recovery Act and have cooperated in every way possible
with the Recovery Administration's aims, we believe that matters
7
8/31/34
of the kind referred to and objected to by the complaining tele¬
graph company are not subject to the jurisdiction of the Recovery
Administration, a position which was concurred in by the tele¬
graph companies other than the complaining company. We stated
to the Recovery Administration, however, that we should be very
glad to have an investigation of the practices complained of
made by a federal regulatory commission. The answer to this
statement was that the Interstate Commerce Commission, which
obviously had jurisdiction to investigate and pass on matters
of this kind, did not have the staff, money or facilities to make
a full investigation,
’’The new Commission, however, has all of these things,
and, as I have indicated, one of its questionnaires already
promulgated goes into these matters in considerable detail. The
Bell System Companies welcome this investigation in which all
phases of these questions can and doubtless will be gone into
and the questions and parties will be given that full and fair
consideration which they are entitled to. This sort of thing,
it seems to me, the new Commission is peculiarly qualified to
look into, and I may say for the Bell System Companies that we
are very glad that they have undertaken to do so with so much
expedition and apparent thoroughness."
"In conclusion", Mr. Hoshour said, "I would reiterate
what I have already said as to the attitude of the Bell System
Companies toward regulation and toward the new Federal Commission.
We believe in regulation and shall continue to believe in it. We
will give to the Commission everything in our power to enable it
to accomplish the purposes for which it was created, and we shall
hope and expect from the Commission a full appreciation of the
problems, difficulties, and, I think I may say, the almost un¬
parallelled type of devotion that through the Bell System and
its connecting companies has given to this country a telephone
service that is the envy of all the world today. "
XXXXXXXXX
PEEBLES ACTING COMMUNICATIONS CODE ADMINISTRATOR
Leighton J. Peebles has been appointed Acting
Administrator of the NRA Communications and Utility Codes,
XXXXXXXXX
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8/31/34
BROADCASTERS BACK ATTORNEY GENERAL IN COMPOSERS SUIT
Declaring that the anti- trust suit filed by the
Attorney General in the New York Federal District Court last
Thursday against the American Society of Composers and the Music
Publishers’ Protective Association, strikes at the heart of the
copyright controversy, the National Association of Broadcasters
lost no time lining up behind the Government in what is expect¬
ed to be one of the most hotly contested actions in the history
of the entertainment industry 0 Philip G0 Loucks, Managing
Director of the Broadcasters' Association is acquainting all
broadcasters with the details of the suit.
Mr. Loucks, calling it one of the most important suits
to be filed by the Department of Justice in many years, points
out that the Government is proceeding not only against the
main organizations, their officers and directors, but also
against their members individually. The list of defendants
covers eleven pages.
To prevent a possible grant of immunity from prosecution
under the anti-monopoly laws to the American Society of Composers,
Authors and Publishers and the Music Publishers' Protective
Association, Oswald F. Schuette, copyright adviser of the
National Association of Broadcasters has asked Gen. Hugh S.
Johnson, National Recovery Administrator, to order a suspension
of further consideration of the Music Publishers' Code. This
Code was presented by the Music Publishers' Protective Associa¬
tion and provides that the directors of this association - all
of whom are named as defendants in the Government's anti-trust
suit, - be empowered to name the Code Authority for the industry.
The text of Mr. Schuette' s protest to General Johnson
follows, in part:
"The Attorney General of the United States filed a suit
yesterday in the Federal District Court for the Southern District
of New York against the American Society of Composers, Authors
and Publishers, the Music Publishers' Protective Association, and
Music Dealers Service, Inc. , charging them with violating the
Sherman anti-trust law.
"This is the same Music Publishers' Protective Associa¬
tion which has presented to the National Recovery Administration
a so-called Code of Fair Competition for the Music Publishing
Industry under which it asks that its Boat'd of Directors - all
of whom are named individually as defendants in the Government's
prosecution - be given the exclusive power to name the Code
Authority for that industry.'
9
8/31/34
"To safeguard the Government’s case, I offered an
amendment at the public hearing on this Code to the proposed
Code providing that 'the immunity from the operation of the
antitrust laws granted by Section 5 of the National Industrial
Recovery Act shall not be applicable to any practices of the
Music Publishers' Protective Association or the American Society
of Composers, Authors and Publishers now under investigation by
any governmental agency. !
"At that time the Government's suit had not been filed.
Now that actual proceedings have been started and that there
may be no danger of granting any such immunity, I respectfully
request that further action upon the Music Publishers' Code be
suspended until proper safeguards shall have been provided to
prevent any possibility of interference with the orderly pro¬
secution of the Government's case."
"While the Government brought the suit against the
American Society of Composers on the eve of the date when
percentage payments by the broadcasters jump from four to five
percent, it will not prevent the increased rate from becoming
effective. Until a decision is reached in the suit, existing
contracts between broadcasters and the Society remain in full
force and effect", Mr. Loucks declared.
"Far reaching in its effects, the suit involves
millions of dollars in license fees and more than a million of
copyrighted musical compositions. It calls for a showdown in
a long and bitter fight which has had its ramifications in the
Congress, the courts and in various Government departments over
a period of many years. Not only would it end for all time the
arbitrary licensing practices of the Society, but it would
materially change conditions under which music is used by every
user of performing rights.
"The theory of the suit is similar to that followed in
the Broadcasters' Association suit filed in the same court on
behalf of Station WIP, of Philadelphia, against the Society.
As does the NAB suit, the Government suit seeks to establish a
system of copyright fees based upon actual use made of public
performance rights and to substitute competition among copyright
proprietors for the present alleged monopoly.
"The Board of Directors of the NAB at its meeting in
February, 1933, and again last May, adopted resolutions urging as
a solution to the copyright problem a theory similar to that
adopted in the two suits now pending against the Society. It
is likely that the WIP suit will be postponed until after the
Government suit is heard. "
XXXXXXXX
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8/31/34
TELEPHONE AND TELEGRAPH DIVISION MEETINGS CANCELLED
Because so few Commissioners were in town, no meetings
were Held of the Telegraph and Telephone Divisions of the
Federal Communications Commission Wednesday and Thursday (August
29 and 30), all business going over until after Labor Day.
X X X X X X X
FARNSWORTH TELEVISION DEMONSTRATED IN PHILADELPHIA
A new television instrument, said to be capable of
broadcasting not only close-ups but entire football and baseball
games and tennis matches, as well as news shots, was demonstrated
last week at the Franklin Institute in Philadelphia. Some of the
scientists who watched, declared it the most sensitive apparatus
yet developed.
The principle of the new system was discovered by
Philo T. Farnsworth, 28-year-old head of Television Laboratories,
Ltd. Mr. Farnsworth, Mayor Moore, Nathan Hayward, President of
the Franklin Institute, Dr. James Barnes, head of its Physics
section, and several tennis stars, taking part in the national
doubles tournament at Manheim, talked or performed before the
"eye" of the television camera in one room, while 200 persons in
a nearby auditorium saw and heard the speakers or athletes on a
greenish fluorescent screen about a foot square, to which the
images were brought by wire from the camera. Images may also be
carried by radio, it is said.
Cloudy weather prevented the program originally schedul¬
ed calling for an outside pick-up by the camera with the audience
inside the building. Sunlight produces better images, it was
explained, than artificial lighting.
Frank X. Shields, of New York, and Lester Stoefen, of
Los Angeles, tennis players, talked, swung rackets and demonstrat¬
ed their favorite grips before the camera, all being clearly seen
by the audience in the other room.
As part of the current demonstration, the moon was
televeyed on clear evenings. The moon is rich in infra-red rays
and subjecting it to television by the new machine will further
demonstrate its sensitivity.
With the exception of a large amplifier, the television
transmitting mechanism is enclosed in a camera-like box scarcely
larger than an ordinary news camera. A photographic lens focuses
the image og the subject on a photo-sensitive surface at the
front end of the Farnsworth cathode tube. At this point the
visual image is transformed into an electron image. At the
rear of the tube is a small nickel sleeve or tube, a photoelectric
cell, the opening of which is only twelve- thousandths of an inch
in diameter. This picks up the electron image.
X X X X X X X
11
8/31/34
GERMAN POST OFFICE SPEEDS UP TELEVISION
Tiie German Post Office announced yesterday (Aug. 30) ,
a spectacular plan to introduce "television telephony" in the near
future, the Associated Press reports from Berlin.
Trials between Berlin and Munich were reported to have
resulted favorably. Postal authorities plan to install a
television- telephone net Uniting the larger cities, further
extension of the system depending on public reaction to "the
still high cost of apparatus. "
The announcement was made while' German radio fans
still thrilled at what technicians called "satisfactory" sound
film broadcasts, which were demonstrated at the eleventh German
radio show by means of a "television car."
Daily transmission of tone films taken from a tele¬
vision car stationed near Berlin1 s radio tower captivated
thousands at the radio show, which closed yesterday with a
record attendance.
Scenes were filmed with an ordinary sound-picture
camera from the top of the car and were developed, ready for
reproduction, within seventy-five seconds. The car was equipped
with developing and transmission apparatus.
The technical side of the procedure reveals that each
picture is broken into dots by means of a perforated disk. The
dots are converted into electrical impulses, which Eire broadcast
simultaneously over an ordinary radio wave. Special appliances
permit the transmission of twenty pictures a second.
The receiving set is equipped with a large tube that
produces a short stream of invisible electrons, which are thrown
on a fluorescent screen. The pictures appear clearly.
Television experts said they were confident of over¬
coming "infant diseases" of the industry soon, after which they
would take up production of television receivers on a large
scale.
XXXXXXXXX
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL- Not for Publication
INDEX TO ISSUE OF SEPTEMBER 7,
1 ‘LVfiOf'Ai. Sii0flDCAf.'T!f!6 fifi"
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1934.
FOG Names Directors of Three Divisions.. . la
Independent Code Operation Assured Radio Manufacturers . lb
Nine New Lawyers Starter For FCC Investigations.. . . . 2
Hearst Reported To Be Doubling Sunday Radio Space . . . 4
Radio Program Listings Increase . . . . . 5
Gilliam All Clear On New Virginia Station . 6
Chicago Added To RCA Intercity Telegraph. . 6
Stewart Next Up For Radio Interview . . . 6
De Forest Loses Sound Recording Suit . 7
Oklahoma Corporation's Official Walker's Secretary . 7
Industry Notes . 8
Hundredth Station Joins Columbia Network.... . 8
Telephone Division Issues No Orders . . . 9
Assail Radio Sales Code . . . 9
Applications Granted By FCC . 9
No. 755
I
9/7/34
FCC NAMES DIRECTORS OF THREE DIVISIONS
The Federal Communications Commission Friday (September
7) appointed the Directors of the three newly created Divisions
of the new organization.
John Killeen, of New York, was named Director of the
Broadcasting Division; Robert T. Bartley, of Texas, was named
Director of the Telegraph Division, and A. G. Patterson, of
Alabama, Director of the Telephone Division.
Brief sketches of these new additions to the staff of
the Commission follow:
John Killeen, whose present residence is in New York
City, was born in Troy, N. Y. in 1876. His first position was
that of a clerk in the Traffic Department of the New York
Central Railroad. He remained with that company for 9 years and
was promoted for meritorious service to be Chief Clerk of the
Traffic Department. He resigned that position to serve as a
member of the Assembly of New York.
For 15 years Mr. Killeen was connected with the
General Electric Company serving as a contact man between the
parent company and holding companies. During that period he
served on various committees of the National Electric Association
and was active in formulation of policies. At the time of his
resignation from the General Electric Company, he was represent¬
ing that Company in broad administrative matters and on policy
questions.
Mr. Killeen established and published a weekly news¬
paper from 1924 to 1953. From 1930 to 1932, Mr. Killeen devoted
much time and study to radio as a means for the dissemination of
news and other information.
Mr. Bartley received his education in the School of
Commerce at Southern Methodist University and Metropolitan Busi¬
ness College at Dallas, Tex., and later was connected with con¬
cerns at Dallas as an accountant and manager. He bega.n work in
Washington as statistician in the investigations (under the dir¬
ection of Dr. V/.M. W, Splawn, then Special Counsel for the House
Committee on Interstate and Foreign Commerce and now an Inter¬
state Commerce Commissioner) into holding companies in the
utilities field. Mr. Bartley was promoted to be Executive Secre¬
tary of the investigating staff and served as such throughout
the investigation of holding companies in the communication field.
The results of that investigation are embodied in House Report
No. 1273 which gives special mention to Mr. Bartley's work.
Among the companies studied in that report are the
Western Union Telegraph Company, the International Telephone &
Telegraph Corporation, the American Telephone and Telegraph Co. ,
and the Radio Corporation of America, as well as others over
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which the Federal Communications Commission now has jurisdiction.
Among other things the report recommended that the Congress enact
legislation to create a Communications Commission with power and
funds for a thorough and detailed investigation of the large com¬
munications companies.
A. G-. Patterson is a native of Decatur, Ala. , and is
50 years of age. He attended the public schools of Alabama and
obtained his A.B. Degree at Terrill College, Decherd, Tenn. From
1920 to 1928 he served as President of the Alabama Public Utili¬
ties Commission. That Commission under his guidance conducted
many proceedings and investigations involving rates, fares,
charges, practices and valuations of telephone and telegraph com¬
panies as well as other public utilities under jurisdiction of the
Commission.
While President of the Utilities Commission, Mr.
Patterson was elected head of the National Association of Railroad
and Utility Commissioners. He resigned as a Commissioner on the
Utility Board to accept appointment by the Governor of Alabama
as a Probate Judge of Morgan County, serving four years.
From April 1, 1933, to June 15, 1934, Mr. Patterson
was engaged by the Special Senate Committee appointed to investi¬
gate Ocean Mail and Air Mail contracts as Chief Investigator.
Mr. Patterson has been a member of the Board of Direc¬
tors of the Tennessee Valley Bank, Decatur, Ala. for 20 years.
In 1926 he was a candidate for Governor of Alabama.
The Commission also placed its field force on a tempor¬
ary basis for a period not to exceed 60 days, pending a reorgan¬
ization now in process under the direction of the Chief Engineer.
XXXXXXXXXX
INDEPENDENT CODE OPERATION ASSURED RADIO MANUFACTURERS
The Code Committee of the Radio Manufacturers’ Associa¬
tion, of which Capt. William Sparks, of Jackson, Mich. , is
Chairman, is now virtually assured of independent Code operation,
according to Bond Geddes, Executive Vice-President of the RMA.
” Whether this will be under the Electrical Code or
whether we will have a Code of our own has not been definitely
determined'1 , Mr. Geddes said, "but in any case independent
operation will be a.ssured us. "
There will be a meeting of the Radio Manufacturers’
Association Borad of Directors in New York Wednesday, September
12th, to discuss the Code.
XXXXXXXX
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NINE NEW LAWYERS STARTER FOR FCC INVESTIGATIONS
When Judge Ira E. Robinson was appointed to the old
Federal Radio Commission, not so many years ago, he declared that
his first work would be to strengthen the legal end of the Commis¬
sion.
"What we need is more lawyers", Judge Robinson said.
"But, Judge, four of the five Commissioners are lawyers -
isn’t that enough lawyers?" someone asked.
"We must have here a strong legal division, examiners,
and so on, and this will require many more lawyers. "
This was prophetic for not only was the Legal Division
of the Commission rapidly built up, but numerous legal Examiners
were added. Even this force, however, was found to be inadequate
to handle the radio, telephone and telegraph investigations which
are now being undertaken by the Federal Communications Commission
(which absorbed the Radio Commission) .
According there have just been added to the Law Depart¬
ment of the Commission, nine lawyers, two of them women. They
will work under the direction of Paul D. P. Spearman, General
Counsel.
They do not include the three Assistant General Counsels
at a salary of $7,500 a year each who are yet to be appointed.
The nine lawyers just named are Col. Davis G. Arnold, formerly of
the Veterans' Bureau, of Washington, D. C. ; Melvin H. Dalberg,
of New York City; John P. Bramhall, of Washington, D. C. ; Albert
E. Stephan, Assistant to the Senate Interstate Commerce Committee,
Washington, D. C. ; A. L. Dalrymple, of Texas, prosecutor of
revenue cases in the Philippine Islands; F. V. Fletcher, of North
Carolina, and Marshall Orr, of Oregon. The women are Miss Annie
Perry Neal, of North Carolina, who has been engaged in private
practice, and Miss Elizabeth C. Smith, of Oklahoma, formerly a
law clerk for Commissioner Walker, when he was Chairman of the
Corporation Commission of Oklahoma.
Colonel Arnold joined the staff of the Federal Communica¬
tions Commission on September 1st in the capacity of Attorney
Examiner and was born in Providence, R. I. He served in France in
the World War as Major in the 26th and the 42nd Divisions, A. E. F.
While in the Government service in Washington since 1923,
he has acted as counsel to the Senate Committee that investigated
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INFORMATION
RADIO CORPORATION OF AMERICA
RCA BUILDING
Release — IMMEDIATE
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NEW YORK
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September 5, 1934.
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Chicago was added today to the new inter-city radio telegraph
service of R.C.A. Communications, Inc., making a total of six large
cities now in the RCA domestic network. The service previously has
connected New York, Boston, Washington, I). C., San Francisco and
New Orleans. Within a short time, Seattle, Detroit and Los Angeles
will be brought into the system and other important cities will be
added later.
Cities included in this domestic radiotelegraph service also
have direct radio contact ’with the international networks of RCA
centering at New York and San Francisco. The new domestic system
is consequently augmenting the importance of New York City as the
radio communications capital of the world.
All collection and delivery facilities of the 'Western Union in
the cities on the intercity chain, as well as the offices maintained
by RCA, are available for the handling of domestic radio messages.
This is an extension of the previous cooperative arrangement through
which Western Union offices throughout the United States collect and
deliver RCA 1 s transatlantic and transpacific radiograms and radio¬
grams exchanged with ships at sea.
Radiotelegraph rates between cities in the United States are
based upon fifteen words at the regular wire-line rate for ten, and
ejetergrams of sixty words for the wire -line rate for fifty.
■'
9/7/34
the Veterans' Bureau, later becoming Assistant Director, National
Guardianship Officer, and Assistant Solicitor in the Veterans'
Administration, formerly the Veterans' Bureau.
Mr. Dalberg was born in St. Louis and educated at
Columbia University. He has been practicing law in New York City
for thirty years. He was Assistant Tax Commissioner of the City
of New York under former Mayor George B. McClellan.
In 1906-07, Mr. Dalberg acted as a member of a Commis¬
sion appointed by the New York State Superintendent of Insurance
which had charge of the conduct of the election of trustees of the
Mutual Life Insurance Company and which held hearings involving
the validity of ballots, for upwards of six months.
Mr. Bramhall first practiced law in Missouri and for
seven years was counsel for the Street Railway System of Kansas
City, Mo. He came to Washington to accept an appointment as
Chief Counsel for the Federal Government in the prosecution of
cases arising out of the military and naval operations in the
World War. He was engaged in this activity in the United States
and in Europe for five years, during which time he acted with the
powers of a Special Assistant to the Attorney General. As a
result of the litigation under Mr. Bramhall1 s direction, the
United States recovered more than $1,500,000.00. In 1923 Mr.
Bramhall entered tile practice of law in Washington.
Mr. Stephan with an LL.B from Harvard Lav/ School, and
an A. B. from Wesleyan University, was an Examiner at the Inter¬
state Commerce Commission for five years. He was an attorney
for the Commission in national investigation of motor transporta¬
tion and later attorney for Federal Co-ordinator of Transporta¬
tion.
Mr. Stephan served as Special Assistant to Senate Com¬
mittee on Interstate Commerce helping to draft Communications Act
of 1934, Emergency Railroad Act of 1933, Railway Labor Act, Rail¬
road Pension Bill and other legislation.
Mr. Dalrymple has an LL.B. from Valpairaiso University
and took the Foreign Trade Course at Georgetown University. He
was formerly a teacher in Texas, and Philippine Islands being
Division Superintendent of Schools at the latter location. He
was a prosecutor of narcotic and revenue cases in the Philippines
and Governor, Amburayan Province, Philippine Islands. He was
Chief Attorney, Board of Contract Adjustment, settling war claims.
Miss Neal, born in Louisburg, N. C. , was graduated with
an A.B. degree from Sweet Briar College, Sweet Briar, Va. , in
1929, and was graduated from Wake Forest Law School, Wake Forest,
N. C. , with LL.B. degree, summa cum laude, in 1932.
She was licensed to practice law by the North Carolina
Supreme Court and admitted to the Bar in 1931. Since that time
she has engaged in the private practice of law in Louisburg, N. C. ,
being the only woman who has ever engaged in the active practice
of law in Franklin County.
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Miss Smith graduated from East Central State Teachers'
College, Ada, Okla. and attended University of Oklahoma, Norman,
Okla. , and Emory University, Atlanta, Ga. She finished Okmulgee
Law School in May, 1929; passed Oklahoma State Bar examination in
June, 1929, with a high grade, ranking among the first six in a
class of approximately 100; with an Okmulgee law office until
March, 1931, when she entered the employ of the Corporation Com¬
mission of Oklahoma as law clerk to Hon. Paul A. Walker, Chairman.
The last three and a half years have been spent in Oklahoma City,
Okla. , where she was law clerk to Paul A. Walker, now Federal
Communications Commissioner.
Mr. Fletcher was born in Sparta, N. C. in 1912. He
attended North Carolina State College for two years and received
his LL.B Degree from Wake Forest College in 1932, and attended
Duke University Law School, 1932-1934. Admitted to practice of
law in North Carolina in January, 1933.
Mr. Orr was born at Klamath Falls, Ore in 1899. He
attended Pomona College in Southern California until enlistment in
the Spring of 1918, returning to college and graduating in 1922
with an A.B. Degree. He received his LL.B Degree from University
of California in 1925. He took office as an attorney in the
Bureau of Inquiry (prosecuting bureau) of the Interstate Commerce
Commission at Washington, D. C. , in February, 1931, and has
remained with that bureau until transferred to the Communications
Commission.
XXXXXXXX
HEARST REPORTED TO BE DOUBLING SUNDAY FADIO SPACE
According to a Chicago dispatch, William Randolph Hearst
has issued orders that beginning September 9th, all his Sunday
papers carry two pages of radio news and programs.
It is also reported that Mr. hearst will establish a
national radio columnist for his papers in the same manner as
motion picture gossip is carried.
XXXXXXXX
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9/7/34
RADIO PROGRAM LISTINGS INCREASE
Radio is more than holding its own in the matter of
friendly relations with daily newspapers throughout the country,
according to a survey just completed by Editor & Publisher, which
finds that there is an increase of 3 per cent in the number of
published papers carrying radio programs compared to figures on
1933 data. Study included all of the newspapers in the United
States having a daily circulation of 10,000 or over. This took
in 565 papers in 312 cities. Due to some newspapers going out of
business and consolidations, actually there are about 25 less
papers concerned in the survey which in 1933 totaled 590 publica¬
tions.
Among the discoveries was the fact that virtually all
of the newspapers that dropped radio columns because of the radio
news broadcasting controversy, replaced the columns in question;
that the number of newspapers that will accept radio programs
only as paid advertising is increasing, and that a large number
of papers have increased the amount of space devoted to radio.
Associated Press radio copy is used exclusively by more papers,
number now being approximately 150. Newspapers not carrying radio
as a regular feature will in most cases do so when such sponsored
programs as the recent Lucky Strike cigaret Metropolitan Opera
fare came along. Also high government officials and lesser lights
got space because of the widespread interest in politics. Radio
editors seem to be strongly intrenched, with only two papers out
of 215 queried not having such editors. Some papers, due to being
on a five days a week basis, employ two radio editors.
Use of newspaper space calling attention to sponsored
programs is on the increase, the ads even appearing in papers which
did not have a radio column, whether through error of the ad agency
or deliberate. Cost of this "spotlight" advertising was reported
as more than paying for itself in the resultant response to the
radio programs. Newspaper ads by way of calling attention to the
program in every case gave the radio advertiser a much quicker
reaction from the consumer.
An innovation is the printing of programs several days
in advance in such papers as go to subscribers by mail with the
reader not getting it the same day. Large newspaper chains are
the most liberal in devoting space to radio, the Hearst organiza¬
tion taking first place. Key stations of both NBC and CBS are
getting 100 per cent co-operation from local newspapers. There
are still many papers that bar mention of sponsored programs and
but two syndicated radio columns are extant, one being by Peter
Dixon and the other by Harriet Menken.
The recapitulation of the figures for 565 newspapers is
as follows: 467 papers carry radio programs (83 per cent); 98
papers carry no radio programs (17 per cent); 171 papers carry
radio columns (30 per cent); 394 papers carry no radio columns
(70 per cent); 167 paperscarry feature boxes (30 per cent); 398
papers carry no feature boxes (70 per cent); 79 papers carry art
(14 per cent); 486 papers carry no art (86 per cent).
XXXXXXXX
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9/7/34
GILLIAM ALL CLEAR ON NEW VIRGINIA STATION
The Broadcast Division of the Federal Communications
Commission at its last meeting reaffirmed the granting of a
construction permit to Marion K« Gilliam for his new station
Staunton, Va. Station KSD, of St. Louis, which is on the same
frequency withdrew its protest and the Commission dismissed the
protest of WEHC, at Charlottesville, Va.
Mr. Gilliam's station will operate on 550 kc. with
500 watts power, daytime.
XXXXXXXX
CHICAGO ADDED TO RCA INTERCITY TELEGRAPH
Chicago has been added to the new inter-city radio
telegraph service of R.C.A„ Communications, Inc., making a total
of six large cities now in the RCA domestic netv;ork. The service
previously has connected New York, Boston, Washington, D. C. ,
San Francisco and New Orleans. Within a short time, Seattle,
Detroit and Los Angeles will be brought into the system and other
important cities will be added later.
Cities included in this domestic radiotelegraph service
also have direct contact with the international networks of RCA
centering at New York and San Francisco. The new domestic
system is consequently augmenting the importance of New York City
as the radio communications capital of the world.
All collection and delivery facilities of the Western
Union in the cities on the intercity chain, as well as the
offices maintained by RCA, are available for the handling of
domestic radio messages. This is an extension of the previous
cooperative arrangement through which Western Union offices
throughout the United States collect and deliver RCA1 s trans¬
atlantic and transpacific radiograms and radiograms exchanged
with ships at sea.
XXXXXXXX
STEWART NEXT UP FOR RADIO INTERVIEW
Commissioner Irvin Stewart of the Federal Communica¬
tions Commission will be interviewed by Martin Codel over an
NBC-WEAF network Tuesday, September 11th, at 8 P.M. EST. Com¬
missioner Stewart is expected to discuss several phases of the
work of the Telegraph Division of which he is the Chairman.
XXXXXXXX
6
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DE FOREST LOSES SOUND RECORDING- SUIT
A patent suit pending in the Federal District court
in Wilmington since 1921 was decided last week in favor of the
plaintiffs, the American Tri-Ergon Corporation of New York, a
Switzerland corporation, and three residents of Berlin - Joseph
Engl, Joseph Massolle and Hans Vogt.
The patent rights at issue were for a glow lamp for
photographic recording of sound, and the suit was directed against
the G-eneral Talking Pictures Corporation, DeForest Phonofilms,
Inc. , and Lee DeForest.
Judge John P. Nields ruled the three Berlin residents
"are the joint and first inventors of the investion" and the
American Tri-Ergon, their assignee, is entitled to the patent
which the Commissioner of Patents had refused in favor of the
defendants.
XXXXXXXXXX
OKLAHOMA CORPORATION'S OFFICIAL WALKER'S SECRETARY
John J, Hassler, of Oklahoma, has been appointed
secretary to Commissioner Paul A. Walker, Chairman of the Tele¬
phone Division of the Federal Communications Commission. Mr.
Hassler was Acting Secretary of Corporation Commission of
Oklahoma.
He was born at Phillipsburg, Kans. in 1906. He gradu¬
ated from Oilton Junior High School in 1919, and from the Still¬
water High School in 1922. He attended Oklahoma A. & M. College,
Stillwater, Okla. (Engineering School) 1922-1924 and part of 1927.
He was later employed by Wood Engineer Co. , Oklahoma City, and
was Consulting Engineer, Oklahoma City from June 1, 1927 to
September, 1929. In 1929 he received a B. S. degree in Civil
Engineering.
Mr. Hassler was appointed City Manager of Elk City,
Okla., which position he held until June 15, 1931, when he was
appointed G-as and Electric Engineer of the State Corporation
Commission of Oklahoma.
Mr. Hassler attended the Oklahoma City School of Law
three terms.
X X X X X X X X
7
'
.
'
9/7/34
: : INDUSTRY NOTES
C. J. Young, of the RCA Victor Co. , a son of Owen D.
Young, Chairman of the General Electric Company, will address the
September meeting of the Washington Section of the Institute of
Radio Engineers Monday, September 10th. Mr. Young will speak on
"Direct Printing Facsimile Equipment and Some of Its Applications",
a development which he has been working on for sometime.
Harold F. Watts, 34, chief engineer of Station KFEQ,
radio station at St. Joseph, Mo. was electrocuted when his left
foot came into contact with a high voltage terminal in the gener¬
ator room of the transmitting station. The station was silent the
rest of the day at the order of Clarence Koch, manager.
Herbert Ba.ya.rd Swope, formerly editor of the New York
World, has been elected Chairman of the Board of the Radio-Keith-
Albee-Orpheum Corporation. Mr. Swope is a brother of Gerard
Swope, President of the General Electric Company.
"Gateway to Radio" is a new book by Major Ivan Firth
and Gladys Shaw Erskine (Macaulay Company, 381 - 4th Ave. , New
York City, Price $2.50) dealing with the program, advertising
and engineering side of radio. There is a foreword by Danial
Frohman.
New York's Electrical and Radio Show will get under way
about the middle of September. It will be held in Madison Square
Garden.
xxxxxxxxxx
HUNDREDTH STATION JOINS COLUMBIA NETWORK
Station KWKH, formerly owned by "Old Man" Henderson, at
Shreveport, La. , will join the Columbia Broadcasting System as the
100th unit of its nationwide network on Saturday, September 15th,
It will operate on a full time basis on a wave length of 1100
kilocycles with 10,000 watts power. The station is now owned by
the International Broadcasting Corporation and will be managed by
Dwight Northrup. It was established in 1925 and because of the
broadcasts of Henderson, became one of the most prominent broad¬
casting outlets in the South.
X X X X X X
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9/7/34
TELEPHONE DIVISION ISSUES NO ORDERS
The Telephone Division of the Communications Commission
met last Thursday but issued no orders. It was said that techni¬
cal and groundwork in connection with forthcoming investigations
formed the basis of discussion. It was the first meeting of
the Commission in sometime owing to the absence from the city of
Commissioner Paul A. Walker.
XXXXXXXX
ASSAIL RADIO SALES CODE
Opposition of a number of radio manufacturers to observ¬
ing wholesale provisions under the Radio Wholesaling Code was
expressed Thursday in Washington at an NRA hearing.
The discussion centred on interpretations by the Code
Authority which included a ruling that a distributor is not per¬
mitted to classify his dealers to extend preferred discounts or
preferred net prices.
Other questions on which the Code Authority had passed
grew out of controversies regarding terms and discounts, in which
it was held that a distributor may not grant preferred discounts
or net prices to a dealer in anticipation of his earning a
quantity discount.
X X X X X X
APPLICATIONS GRANTED BY FCC
BROADCAST DIVISION (September 4) - KADA, C. C. Morris,
Ada, Okla. , modification of C.P, approving transmitter location
and move of studio to Highway No. 48, 1 mile north of Ada, Okla. ,
installation of new equipment, extension of commencement and
completion dates from 8/6/34 and 11/6/34 to 30 days after grant
and 90 days after grant, respectively; KOL, Seattle Broadcasting
Co., Seattle, Wash., modification of C.P. , extension of completion
date from 9/25/34 to 10/25/34; WT AX , WTAX, Inc. , Springfield, Ill. ,
license to cover C.P. 1210 kc. , 100 watts, shares with WCBS; WFBC ,
Greenville News-Piedmont Co. , Greenville, 8. C. , license to cover
C.P. 1300 kc. , 250 watts, EhaKKSXwtthxWSMM; 1 KW LS, unlimited;
KGKL, KGKL, Inc., San Angelo, Tex., license to cover C.P. 1370 kc.
100 w. night, 250 LS. unlimited; W6XAI , Pioneer Mercantile Co. ,
Bakersfield, Cal., modification of C.P. (Exp. -Exp. Broadcast)
extension of completion date from 9/11/34 to 12/11/34; W2XAG,
R. D. Lemert, Portable (New York), license to cover C.P. (Exp.-
Exp. Visual Broadcasting), 42000-56000, 60000-86000 kc. , 100 w.
A3, A4.
9 -
9/7/34
Also, W9XDT, Purdue University, Portable (Lafayette,
Ind. ) , license to cover C.P. 890 kc. , 50 w. Al, A2, A3; WPFB ,
Otis P. Eure, Hattiesburg, Miss. , special temporary authority to
operate specified time Sept. 6 and 7, 1934 in order to broadcast
meeting of Mississippi State Bar Association; KSUN , Copper
Electric Co. , Inc. , Lowell, Ariz. , special temporary authority
to remain on the air after local sunset on the nights of Sept.
11, 1934, and Nov. 6, 1934 for the purpose of broadcasting elec¬
tion returns; WBHS, Virgil V. Evans, Huntsville, Ala., special
temporary authority to remain silent for a period not to exceed
90 days but in no event for a period longer than 3 A.M. Dec. 1,
1934, EST, in order to obtain a location for the station; WRGA,
Rome Broadcasting Corp. , Rome, da., special temporary authority
to operate from 9 P.M. to 12 midnight CST, Sept. 12, 1934, in
order to broadcast election returns.
TELEGRAPH DIVISION (September 5): WSDI , Aeronautical
Radio, Inc., Cincinnati, Ohio, modification of license, authority
to operate by remote control (licensed for 2612, 2636, 3457,5,
4740, 6540, 6550, 6560, 8015 kc. , 250 w. Al); W4XS, City of La
Grange, La Grange, Ge.. , license to cover C.P. 30100, 33100, 37100,
40100 kc. , 15 w. , A 3 emission (licensed operator at control point
only) ; W1XZ, Greenleaf Whittier Pickard, Seabrook Beach, N. H. ,
license to cover C.P., 41000, 63000, 60500 kc. , 2 watts, A2, A3;
New, City of Santa Rosa, Santa Rosa, Calif., C.P. 2422 kc. , 500
watts, A2 Spec; W6XI , RCA Communications, Inc., Bolinas, Calif.,
modification of license to delete the frequency 10320 and replace
it with 9490 kc. ; WMZ , Mackay Radio & Telegraph Co. , Inc. , Say-
ville, N. Y. , fixed public-point-to-point telegraph, modification
of license, add frequencies 4570, 4675, 4685, 4690, 5985, delete
frequencies 4660, 4665, add Fed. Teleg. Co. transmitter; points
of communication: Delete Copenhagen, Denmark; Add: Kansas City,
Mo. ; Atlanta, Ga. , Washington, D. C. ; KNR, Mackay Radio & Tele¬
graph Co. (Cal.), Clearwater, Calif. , fixed public-point-to-
point- telegraph; granted modification of license - Delete fre¬
quencies 4405, 7752.5 kc. , add: 4575 kc.
Also, KNA, Mackay Radio & Telegraph Co. , Palo Alto,
Calif., modification of license, delete frequencies 4395, 4400,
5985 kc. , add: 4195, 4665, 5240, 5980 kc. ; also modification of
license addition of 2 - 20 KW transmitters, addition of Honolulu,
'T. H. , as point of communication; delete 4395, 5985 kc. , add:
4665, 5240, 5980 kc. ; KQU, Same applicant, Kailua, T. H. , modifi¬
cation of license, change frequency from 4660 kc. to 4690 kc. ;
KVP , City of Dallas, Dallas, Texas, modification of license,
extension of completion date from 7/23/34 to 9/1/34; KGZG, City of
Des Moines, Des Moines, la,, license to cover C.P. (Auxiliary
transmitter) 2466 kc. , 100 w. and 15 watts, A3 emission; KGPJ,
City of Beaumont, Beaumont, Tex., C.P. for an additional trans¬
mitter, 1712 kc. , 100 w. power, A3; KGZU, City of Lincoln, Lincoln,
Neb., modification of license, change in equipment and power from
50 to 200 watts; WPGT, City of New Castle, New Castle, Pa.,
license to cover C.P. 2482 kc. , 50 watts, A3 emission; KNFB , City
of Idaho Falls, Idaho Falls, Idaho, modification of C.P. to extend
commencement date from 5/29/34 to 10/29/34 and completion date
from 9/29/34 to 12/14/34; New, State of Washington-Highway and
Police Dept., Shuksan, Wash., C.P. 2490 kc. , 10 watts, A3 emis¬
sion; Bellingham, Wash. C.P. 2490 kc. , 50 watts, A3 emission.
XXXXXXXX
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF SEPTEMBER 11, 1934.
News Broadcasts Policy May Cause Cincinnati Scrap . 2
Radio Wholesalers' Cod.e Threatened By Lack Of Funds. . 5
Predicts ABS Western Chain . . . 6
Cleveland Radio Editor is Wedded . 6
Trade Body To Make Few Radio Advertising Complaints . 7
A Pair To Draw To . . . 8
News Censoring "Poppycock", FCC Commissioner Declares. . 8
Industry Notes . 10
"Crazy Crystals" Order Seen As Code Test . 10
Appointments Of Communications Directors Political.... . 11
Broadcast Division Amends Order No. 2 . 12
Broadcasting Applications Granted By FCC . 12
No. 756
September 11, 1934.
NEWS BROADCASTS POLICY MAY CAUSE CINCINNATI SCRAP
Usually national conventions are cut and dried affairs
but several live issues are scheduled for discussion at the
annual meeting of the National Association of Broadcasters in
Cincinnati next Monday (September 17th).
If the speech of Senator C. C. Dill, of Washington, on
the subject of "News by Radio" is as belligerent as his friends
say it will be, it may bring to the convention floor a feud which
has been raging between the stations who subscribe to the Press-
Radio Bureau, and those who seek to broadcast more news bulle¬
tins and to have them sponsored by advertisers.
Senator Dill, who retires from the upper legislative
body January 1st, denies that he has any personal interest in any
company to engage in radio news broadcasting, and that after his
retirement from Congress, he will take up law practice. He
declares his interest is entirely that of public service to
listeners. In a speech made in Chicago on Labor Day, and in
conversation, he hats predicted, with considerable emphasis, that
newspaper publishers, through the Press-Radio Bureau, are
stifling news broadcasts and that their bulletins are too in¬
frequent. In view of the latter assertion, it is interesting to
note that in connection with the burning of the steamship "Morro
Castle", that up to noon of that day, the Press-Radio Bureau
broadcast 20 bulletins and by 3 o'clock in the afternoon, the
number mounted to 36 with additional news broadcasts regarding
the identification of the dead andinjured continuing throughout
the remainder' of the day.
According to Senator Dill, there is more demand for
news broadcasts, especially in the rural sections, than for
almost anything else on the radio. By way of proving this, he
will make public at Cincinnati the results of the questionnaire
which he recently sent out to 580 broadcasters asking them if
they desired more news broadcasts. Three hundred and fifty,
according to the Senator, have replied in the affirmative.
The Senator has stated that the time has come to
determine whether or not radio stations are to be "dictated to"
by the newspapers with regard to news bulletins broadcast. This
doubtless will be the question which he will raise for discussion
in his speech at Cincinnati.
2
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9/11/34
Another paramount question when the broadcasters
gather in the Middle West will be their attitude at the hearing
before the new Communications Commission, October 1st, to deter¬
mine whether twenty-five percent of the wavelengths should not
go to educational, religious and other non-profit making insti-
tuions. According to Henry A. Bellows, Chairman of the Legis¬
lative Committee of the NAB, the broadcasters do not realize,
apparently, that from the October 1st hearing, Congress may be
expected to formulate future policies with respect to the Ameri¬
can broadcasting situation
"They do not realize that the Commission is required,
by law, to report to Congress its recommendations for new legis¬
lation", said Mr. Bellows. "These recommendations will be
based on actual facts presented at the October hearing. " Mr.
Bellows and others will endeavor to acquaint the industry with
the urgency of this question and the necessity of putting up a
strong fight to keep from losing some of their present choice
frequencies.
Still another matter of wide interest will be the
consideration of ways and means to follow up the G-overnment anti¬
trust suit against the American Society of Composers. Although
this suit will not prevent the increased rates levied by the
Composers upon the broadcasters from becoming effective, never¬
theless, it has heartened them in their fight against the ASCAP.
Those who will be heard from on this will be Oswald F. Schuette,
Copyright Advisor of the Broadcasters, of Washington; J. P.
Hostetler, special counsellor and law partner of Newton D. Baker,
of Cleveland, and Isaac D. Levy, Treasurer of the organization.
Despite the reassurances given to the industry that
their advertising programs on the whole are O.K. , insofar as
fraudulent and misleading advertising is concerned, the con¬
vention will await with considerable interest what Commissioner
Ewin L. Davis, of the Federal Trade Commission, will have to say
to them "off the record" on the subject. Commissioner Davis,
who, as a member of Congress, helped frame the original Radio
Act, is known to be very outspoken and in his discussion of
radio advertising will no doubt speak plainly.
A. J. "Hollywood" McCosker, President of the Broad¬
casters, is showing rare political form in his silence with
regard to whether or not he is seeking a third term as President
of the Association. There is known to be considerable sentiment
in favor of Mr. McCosker' s continuance, his friends declaring
that he could easily be reelected, but thus far the NAB Presi¬
dent has not been heard from one way or another.
If Mr. McCosker should decide not to run, the next in
line for the presidency, insofar as seniority is concerned, are
Leo J. Fitzpatrick, Station WJR, Detroit, First Vice-President,
and John Shepard, III, WNAC, Boston, Second Vice-President.
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A new name mentioned in connection with the election
of officers at Cincinnati, September 18th, as a presidential
possibility is that of Henry A. Bellows, of Washington, Chair¬
man of the Legislative Committee of the National Association of
Broadcasters. This proposal was made on the supposition that
the position as head of the organization might become a salaried
one.
The name of Powel Crosley, Jr. , of Cincinnati, has
also been proposed, but it is said that Mr. Crosley, because of
his other numerous large interests, would not be able to con¬
sider it.
Six new Directors are to be elected and here may
develop a contaet between representatives of the networks and
independent stations.
The convention will also have a chance to size up
Hampson Gary, newly appointed Federal Communications Commissioner
who is in charge of the Broadcasting Division. Mr. Gary will go
from Washington especially for the purpose of addressing the
meeting. The general supposition is that his appointment is
temporary and that he will be succeeded January 1st by Representa
tive Anning S. Prall, of New York, a personal friend of the
President, whose term in Congress expires at that time.
Mr. Gary, in his short time as Commissioner, has
created a favorable impression and already his friends have sug¬
gested that perhaps the President could be persuaded to appoint
Mr. Prall to some other position so that the time Commissioner
Gary has served would not be lost in breaking in another new man.
Of the major questions to be taken up at the conven¬
tion, there seems to be less interest in that of the Broad¬
casters’ Code than in any of the others. Maybe the appearance
of Sol A. Rosenblatt, NRA Deputy Administrator, who will speak
at the convention, will revive interest in the subject.
Although James W. Baldwin, Executive Officer of the
Code Authority, has called a special meeting the day after the
convention adjourns, it is said that the call has been met with
such a slight response that it seems doubtful whether enough
broadcasters can be persuaded to stay over to justify holding
the meeting.
XXXXXXXX
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9/11/34
RADIO WHOLESALERS' CODE THREATENED BY LACK OF FUNDS
Unless an opportunity is given them to increase the
sources of money to meet expenses of Code administration, their
Code will become an almost useless instrument, members of the
wholesale radio trade have told the Administration. They were
appearing before Frank C. Felhaber, Assistant Deputy Administra¬
tor, in support of an application filed by the Code Authority
for termination of that provision of Administration Order X-36
which frees members of a trade from contributing to the expense
of administering a code other than that embracing their principal
line of business.
The trade, which is operating under a code supplemental
to that of the general wholesaling or distributing trade, was
represented by the members of its Code Authority. They explained
that, with changing economic conditions, there now remain few
concerns whose "principal line of business" is the wholesaling of
radios. It follows, they said, that unless assessments are per¬
mitted against those wholesalers who sell radios in "substantial"
volume, but not necessarily in a volume large enough to be
characterized as the "principal" line of business, the Code
Authority will not be able to carry on.
Their attention was directed to Administration Order 78
which provides that no order of termination of the exemption in
Order X-36 shall be construed to "require any member of any trade
or industry to contribute to the expenses of administration of
any Code which covers his principal line of wholesale (or retail)
distribution. "
Order 78, however, does open the way to agreements
between two or more Code Authorities, with the approval of the
Administrator, regarding the collection or allocation of assess¬
ments.
An intimation by H. C. McCarty, NRA Consumers’ Adviser,
that radio wholesalers might scrap their supplemental code and
be governed by terms of the general wholesale code brought the
quick rejoinder that the general code makes no provision for
gathering administrative funds; and that administration in the
trade has been left to the divisional codes.
This situation, it was declared, leaves the entire
structure of distributing codes in danger of collapse because of
possible failure to get into the treasury sufficient funds for
administration.
Mr. Benjamin G-ross, Chairman, who presented the trade's
case, and his associates, asked that the Administration take
action without delay to enable them to maintain a code in which
all the trade had confidence.
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Mr. Gross, and Mr. Estrora and their associates ex¬
plained that in the early days of radio, numerous concerns
established themselves as wholesalers. When sales of radio
dropped, these concerns began selling refrigerators and other
products. Now, a great majority are forced to admit that the
radio department is not their principal line of business. Never¬
theless, it was asserted, the sales of radios and radio equip¬
ment by many of these concerns still are huge. The Code
Authority spokesmen pointed out the "absurdity" of their not
levying an assessment upon a dealer whose radio sales amounted
to $200,000 a year, merely because his sales of refrigerators
and other products amounted to $201,000.
They admitted it would not be just or proper to expect
contributions from a dealer doing only a small business in radios
and they suggested that the plan of assessment be changed so
that a dealer doing less than a $10,000 radio business annually
be exempt.
XXXXXXXXXX
PREDICTS ABS WESTERN CHAIN
Fred Weber, Vice-President of ABS, in charge of sta¬
tion relations, is out scouring the field of independent
broadcasting stations for possible additions westward to radio's
newest network.
"He has an awful job on his hands", commented LeRoy
Mark, owner of WOL in Washington, "but we're still contemplating
and working on what we started before. Weber is going at it in
a businesslike and mouth-shut sort of way - but it's coming -
ABS will have a Western chain."
XXXXXXXX
CLEVELAND RADIO EDITOR IS WEDDED
Norman Siegel, Radio Editor of the Cleveland Press ,
was married last Friday to Miss Margaret Elizabeth Ma&£. Miss
Moff is the daughter of Mr. and Mrs. Hammond Mo SS , of Cleveland.
Mr. Siegel is popular among his associates and because
of his independent criticism and enterprise in gathering the
news, is one of the best known radio editors in the Middle 'West.
XXXXXXXX
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9/11/34
TRADE BODY TO MAKE FEW RADIO ADVERTISING COMPLAINTS
The radio broadcasting industry's compliance with the
Federal Trade Commission's recent requirement for submission to
it of copies of advertising programs broadcast by the networks
and broadcasting stations has been so complete that of 598
stations in the country, only 5 have as yet failed to file
copies of their advertising programs with the Commission. All
of the networks have complied.
Of these five delinquent stations, one is in Alaska
and another in Hawaii, so that it is entirely possible that
these two stations have complied with the Commission's request
and that their continuities are in the mails in transit to
Washington.
"So general has been the compliance", the Federal
Trade Commission states, "and so gratifying the cooperation which
the radio broadcasting industry has given to the Federal Trade
Commission in its effort to free radio advertising of false or
misleading matter and place it on an even footing with printed
advertising in new spapers and periodicals that the Commission
anticipates it will be necessary to issue very few complaints
against either advertisers or broadcasting stations. "
The Federal Trade Commission recently announced that
radio advertising would be subjected to its scrutiny, under
authority conferred upon the Commission by Section 5 of the
Federal Trade Commission Act. The Commission said at that time
that all networks, broadcasting stations and transcription
companies would be requested to file copies of their advertising
programs with the Commission (beginning July 1st). During July,
the Commission received 998 reports from network systems and
broadcasting stations and 681 during August. The Commission has
examined 117,357 programs and have on hand more than 50,000
which are now under examination. Of the programs already examin¬
ed by members of the Commission's staff, 97,356 have been filed
without action, having been passed as free from violation of the
law prohibiting false and misleading advertising in interstate
commerce. "The remaining 19,991 programs already examined are
being further checked, but it is probable that of these only a
small percentage will be found to be in violation of law", the
Federal Trade Commission continues.
"Where programs are found to contain false or misleading
statements, the stations are communicated with and, generally
speaking, the broadcasting companies and stations are taking the
necessary steps to eliminate all objectionable matter and bring
the advertising programs within the law.
"The Commission subsequently advised the broadcasting
stations that transmittal to it of advertising continuities might
be discontinued until further notice. Somewhat later, the Com¬
mission will again require that such programs be submitted for
- 7 -
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another check-up. However, no letter of discontinuance was sent
to the networks or the transcription companies and their programs
are still being received.
"During July, under the first call for the submission
of radio programs to the Federal Trade Commission, 114 stations
failed to comply with the Commission's request. A follow-up
letter was sent to these stations with the result that the number
of stations failing to comply was finally reduced to five and
these stations have been communicated with and it is the Commis¬
sion1 s expectation that within a short time every broadcasting
station in the country will be filing its advertising programs
and that compliance will be 100 per cent. "
XXXXXXXX
A PAIR TO DRAW TO
Commander E. F. McDonald, President of the Zenith Radio
Corporation, of Chicago, is cruising on his yacht in Georgian
Bay, Canada. With Commander McDonald is Powel Crosley, Jr. , of
Cincinnati. Mr. Crosley has with him on the trip his Douglas
amphibian plane.
XXXXXXXX
NEWS CENSORING "POPPYCOCK", FCC COMMISSIONER DECLARES
Charges that the Federal Communications Commission
would be instrumental in censoring news are absolutely untrue
without even the saving grace of plausibility, Dr. Irvin Stewart,
Chairman of the Telegraph Division of the Federal Communications
Commission, declared in an interview with Martin Codel, broadcast
over NBC Tuesday night (September 11).
"Such charges show complete ignorance of the Communica¬
tions Act and of the actions of the Communications Commission
under that law", Dr. Stewart declared. "If there had been the
slightest grain of truth in the charges, the press associations
would have been the first to register protests. But those
associations know .that the Commission has neither the power nor
the desire to play the censor. The fact that such fanciful and
unfounded charges can be made and circulated by radio and in the
press is the best possible evidence that there is no censorship.
I am tempted to dismiss the charges, however honestly they may
have been advanced, with the only expression which I believe they
deserve - 'poppycock5. The dictionary defines "'poppycock1 as
'empty talk, foolish nonsense, bosh.' With that definition, the
word fits the situation perfectly. As some persons may have been
- 8 -
9/11/34
misled by the charges, however, I want to emphasize that the
Commission does not have the power, the desire or the intention
to engage in censorship in the slightest degree; and I want to
add that no one, in the administration or out, has ever suggest¬
ed to us that censorship in any degree was desirable. And when
I make these statements, I make them as one in a position to
know and who does know what he is talking about. 11
Efficient communications at reasonable rates are
essential, according to Dr. Stewart, who continued:
"To attain the proper balance is a matter of great
delicacy. Realizing this, the Commission is fortifying itself
with facts; only after we get the facts can we- map out our
course. The art of electrical communications - I may seem
trite in saying so - is still young. There is no telling where
it vyill go, what with the tremendous strides both radio and wire
communications have taken in recent years*
"I may say, and I know I speak for my colleagues, that
the Commission's prime motive will be to develop its usefulness
and to aid its growth as a servant of the public in the interest
and for the benefit of the public; to guide its development along
rational lines, and to encourage worthy and bona fide experi¬
mentation in every respect.
Dr. Stewart praised the amateurs and said:
"There are over 46,000 licensed amateur stations in
the United States. It has been our government's policy to
encourage them as far as possible, fighting for them in inter¬
national conferences and setting aside wave lengths for their
exclusive use nationally.
"Everyone knows what these 'hams' have done in the
past, quite aside from furnishing the radio industry with splendid
man power and making outstanding contributions to the development
of radio; especially how they have set up emergency communica¬
tions when other lines of communication were down in times of
storm and flood. They are a fine lot, and the Commission is
glad to encourage them. "
XXXXXXXX
9
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9/11/34
INDUSTRY NOTES:
The American Broadcasting Company received consider¬
able photographic publicity through the initials on their micro¬
phones at the "Morro Castle" inquiry in New York. Newspaper
readers apparently were quite familiar with "NBC" and "CBS" but
many asked what "ABS" meant.
WOL in Washington asked Capital listeners if they
wanted the ABS "Morro Castle" broadcasts continued and both
phones of the station were swamped with calls in the affirmative
so the station kept the hearings from 1 to 3 P.M. during which
time they are ordinarily off the air.
Don M. Lee, 53, operator of the Don Lee Network and
owner of four California stations, died unexpectedly August 30
of heart disease in. Los Angeles.
Mr. Lee, already the owner of KFRC, San Francisco,
purchased KKJ in 1927, and since that time has been an important
factor in radio development on the West Coast.
Sparks-Withington Co. - Year ended June 30: Net loss
after taxes, depreciation and other charges, $344,381, against
$285,137 loss in preceding year. Six months ended June 30: Net
loss, $179,925, compared with $84,141 loss in first six months
of last year.
X X X X X X X
"CRAZY CRYSTALS" ORDER SEEN AS CODE TEST
The order of James W. Baldwin, Executive officer of the
Broadcasting Code, for all stations to furnish a sworn statement
of contracts to broadcast programs advertising, "Crazy Crystals"
seems to be construed as an acid test as to whether or not the
trade practices clause in the Code is going to mean anything.
It is understood that Code officials believe there is
rate chiselling in connection with this account, that is, some
stations are selling time under what their rate cards call for.
If this is true, the "Crazy Crystals1' order will prove a show¬
down as to exactly what authority Code officials have in such
matters.
XXXXXXXXX
10 -
9/11/34
APPOINTMENTS OF COMMUNICATIONS DIRECTORS POLITICAL
The appointments of the three new Directors of the
Federal Communications Commission, John Killeen, of New York,
Broadcast Director; Robert T. Bartley, Telegraph Director, and
A. G-. Patterson, Telephone Director, were purely political.
It had been expected, since the Commissioners themselves were
for the most part political appointees, that perhaps men with
some technical ability or actual experience in the industry
would be appointed as Directors of the respective divisions, but
the contrary was true and as the Communications Commission set¬
up now stands, it is almost 10 0% political. The Administration
was trying to find a place for Mr. Killeen in the days of the
old Radio Commission when he was mentioned as a successor to
Commissioner Starbuck.
Killeen was the publisher of the New York Democrat
which was said to be among the earliest publications to advocate
the candidacy of Franklin D. Roosevelt. Copies of the paper
containing laudatory Roosevelt articles were sent to all parts
of the United States. Killeen was backed by Ed Flynn, Democratic
Bronx political boss and Postmaster General Farley. Kileen's
only actual radio experience is set forth in the official FCC
handout as follows:
"From 1930 to 1932, Mr. Killeen devoted much time
and study to radio as a means for the dissemination of news and
other information. "
Mr. Bartley, Director of the Telegraph Division, is a
nephew of Representative Sam Rayburn, of Texas, which explains
that appointment, Rayburn having been the co-author of the Com¬
munications Act.
The appointment of Mr. Patterson, Director of the
Telephone Division, is credited to Senator Black, of Alabama.
,rIt was a political appointment pure and simple", said
a man in the industry. "Patterson isn't especially qualified
for the telephone business. Commissioner Walker, in charge of
the Telephone Division wanted to appoint his own people but
Pettey, the Commission's secretary, representative of Farley
in the Commission, already had the list of men to be appointed
and Patterson's name was on it."
XXXXXXXXXX
11 -
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9/11/34
BROADCAST DIVISION AMENDS ORDER NO. 2
The Broadcast Division took the following action today,
Tuesday, September 11th:
11 It is ordered that Order No. 2 as amended, promulgated
by the Commission August 28, 1934, be amended by inserting after
the word ’each1 of paragraph la of said order as amended, the
following:
"Provided, however, that if said licensee corporation
has of record on said date 1000 stockholders or more, said corpora¬
tion shall be required to file with the Commission the list only
of such stockholders owning 1 percentum or more of stock in such
corporation. "
So as to make Section la read as follows:
"La - The list of the stockholders of record, together
with the numbers and the amount of stock held by each; provided
however, that if said licensee corporation has of record on said
date 1000 stockholders or more, said corporation shall be required
to file with the Commission a list only of such stockholders own¬
ing 1 percentum or more of stock in such corporation. "
IT IS FURTHER ORDERED that the next to the last para¬
graph of said Order No. 2 as amended, be amended as follows by
inserting after the parenthesis and before the word "or" in
line 4 as it appears on the minutes of the Commission, the
words "as required by Section la hereafter as amended. "
XXXXXXXXXXXXX
BROADCASTING- APPLICATIONS GRANTED BY FCC
September 11 - WJE J , Hagerstown Broadcasting Co., Hager-
town, Md. , special temporary authority to operate from local sun¬
set to 11 P.M. EST on Tuesdays, Thursdays, Saturdays and Sundays,
with power of 50 watts, for period ending Oct. 12, 1934; KSLM,
Oregon Radio, Inc., Salem, Ore., modification of C.P. to make
changes in equipment; WIBW, Topeka Broadcasting Assn., Inc.,
Topeka, Kans. , C.P. to make changesin equipment and increase day
power from 1 KW to 2-§- KW, (normally licensed 580 kc. , 1 KW, share
with KSAC) ; WSEN, The Columbus Broadcasting Corp. , Columbus, Ohio,
consent to voluntary assignment of license to WOOL f Inc. ; WBBZ,
Estate of C. L. Carrell (deceased), Ponca City, Okla, C.P. to move
transmitter locally in Ponca City, Okla; W8XAI , Stromb erg- Carl son
Tel. Mfg. Co., Rochester, N. Y. , modification of C.P. (Gen. Exp.)
extending completion date from Aug. 27 to Oct. 27, 1934.
XXXXXXXX
12 —
■
riiW '
LF0AL DEPARTMENT
Ip i ® i a w i p
Heinl Radio Business Letter 4
2400 CALIFORNIA STREET WASHINGTON, D. C.
i H
CONFIDENTIAL — ■ Not for Publication
INDEX TO ISSUE OF SEPTEMBER 14, 1934.
Composers Welcome Court Test, Mills Declares . 2
Recent Olympia, England, Radio Show Successful . 5
Censorship Seen If Educational And Religious Programs Favored. .. 6
Vas You Effer In Zinzinnati? . 8
Radio Advisory Council To Meet In Chicago . 8
Broadcast Advertising Shows Decline . 9
Sales Agreement Reported Aiding Germany Radio Trade . 10
Calls Ford License Cancellation Crackdown . 10
Harry A. Woodman Named KDKA General Manager . 11
Another Lawyer For FCC . 11
Applications Received By Broadcast Division, FCC . 11
European Radio Not Suited To U. S. , Announcer Finds . 12
New Applications Granted By Telegraph Division . 12
No. 757
' •
■
■
COMPOSERS WELCOME COURT TEST, MILLS DECLARES
In an exclusive interview, L. C. Mills, General Manager
of the American Society of Composers, Authors and Publishers,
regarding the suit recently filed in behalf of the United States
of America by the Attorney General under the Anti- Trust Laws,
commented as follows:
"ASCAP welcomes this suit. It is quite as anxious as
its opponents or the Government can possibly be to know whether
it is operating illegally. For twenty years such a suit has
been threatened, and during these same two decades, ASCAP has
continued to function and in the interim has been investigated
repeatedly by the Department of Justice, the Federal Trade Com¬
mission and other governmental agencies. It has also, during
that time, been a litigant in the Federal Courts of nearly every
jurisdiction and in the Supreme Court of the United States. It
has had every right to believe, and it now believes, that it has
functioned and is now functioning not only in a completely legal
but as well, a decidedly laudable, manner. Naturally, we would
feel so. And, just as naturally, our opponents no doubt feel
otherwise.
''From the outset of broadcasting, ASCAP h,as continu¬
ously invited the broadcasting industry itself to establish a
basic formula under which fees should be paid for the right to
perform publicly copyrighted music. The broadcasters started
out with a refusal to pay anything. When they were brought to
book in the Federal Courts and it was held that a broadcast
rendition was a ’public performance' and under certain circum¬
stances 'for purposes of profit', they first began to threaten
ASCAP with dissolution under anti-trust laws. The plain truth
is that they did not want to pay anything and through the years
have resisted every effort made by the composers and authors to
collect a fair fee for the use of their works.
"It will serve no purpose for the copyright owners on
the one side of this controversy, and the broadcasters on the
other, to make faces and gnash their teeth at each other. Whether
the copyright owners like it or not, or the broadcasters, the
operation of broadcasting is going to continue and the copyright
owners no less than the broadcasters will have to find some basis
upon which they can deal with due regard to the just needs and
activities of all parties.
2
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"We were threatened with this suit as the alternative
to making a rate for our license fee whi ch would be agreeable to
the National Association of Broadcasters. The NAB does not have
authority to deal conclusively for one single broadcaster. Nor
does it have any authority to approve a rate for one single
broadcaster. It deals in generalities and the broadcasters them¬
selves have not authorized the NAB or anyone else to speak for
them in the final acceptance of a formula to govern the license
fee rates, even if ASCAP were prepared to submit one. ASGAP has
always been prepared to deal with dispatch and conclusively in
behalf of all of its members and the many foreign societies with
which it is affiliated.
"In April, 1932, ASCAP submitted to all of the broad¬
casters a basic formula. The NAB between April 11th and the
middle of August fumbled around with the proposition and finally,
apparently unable to reach any definite conclusion or to get
its membership to agree as a unit upon some counter-proposition,
reluctantly, did seem to sanction the three-year agreement which
was then negotiated. It proceeded at once then to indulge in a
campaign of vilification and to do everything it possibly could
to estrange the copyright owners, to offend them, to make them
feel that the broadcasters had their licenses under duress. As
soon as this feeling became apparent, ASCAP invited the NAB and
each and every of the broadcasters to name any station which was
dissatisfied with its license and desired to cancel the same,
and to this good day, no station has asked to have its license
cancelled. Neither has any station ever asked that it be per¬
mitted to do business direct with individual copyright owners.
However, ASCAP has not hesitated in every case where a station
has indicated that it might possibly prefer so to do, to invite
that station to cancel its license and to deal with the individual
copyright owners.
"ASCAP has no need to worry about the outcome of this
suit. It is perfectly prepared to abide the consequences, and
as an individual who, in 1924, said ’Radio constitutes the great¬
est contribution that Science has ma.de to Mankind; it will do more
to give us a universal language; to make wars impossible; to bring
about the true millennium more than anything that has happened in
the World since the advent of the Christian Religion1 , I personally
hope that the broadcasters have considered the situation that will
result if the suit of the Government is successful, sufficiently
careful not then to come crying for the organization of something
to take its place. Its own so-called ’Radio Program Foundation’
will never do it, or anything like it, because if ASCAP is found
to be illegal, that Foundation will be found just as much so.
"The rights vested in the members of ASCAP under the
Copyright Law are reasonable and in accord with the practice of
civilized governments throughout the world. A great many broad¬
casters recognize these rights cheerfully, and not nearly so
many broadcasters as professional propagandists would have us
believe are discontented 'with the present arrangement. We know,
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9/14/34
because we have almost daily contact with them, and as individ¬
uals they often sing a different song from the tune called by
those who assume to speak for them.
"I am glad to make this statement just prior to the
forthcoming NAB Convention, that I think it would be healthy and
useful if the true issues were frankly and openly discussed on
the floor of the Convention. A8CAP has no wish to take part in
the internal politics of the NAB but it knows a good deal about
them and it would be sorry to see the rank and file of broad¬
casters subjected to the chaos and confusion that would result
from a dissolution of ASCAP and a necessity for each broadcaster
to deal individually with separate copyright owners. I know
something of broadcasting, and of the 'headaches' that would
be involved.
"Broadcasters this year will sell over one hundred
million dollars worth of time to advertisers. They mail sell
this time only because of their use of music. Without using
music for the bulk of their programs, they could not sell one-
tenth as much time to sponsors. They might as well make up
their minds that the copyright owners are going to be fairly
paid for this use of their mrorks - either through ASCAP or
otherwise, make no mistake about that. These owners have no
wish to be excessively paid - they want no more than it is right
and fair that they should receive and they mall not willingly
accept anything less. Let the broadcasters not make the mistake
of thinking that the individual copyright owners mall not know
their rights if ASCAP is dissolved or that there will not be
some machinery set up to police the situation for them. Composers
and authors are by no means powerless. They know' their rights.
Knowing them, they have no wish to assert them harshly or un¬
fairly, and no purpose is served by threatening them or indulging
in invective or vituperation.
"To the extent that he is interested in this music
copyright situation, let every broadcaster take to heart this
plain and simple statement - that the musical copyright owners
realize that the broadcasters are amongst their best customers
and they are anxious to deal math them fairly and equitably and
with due regard for their situation no less than with a determin¬
ation that the composers and authors shall be fairly paid for
their contribution to this tremendous operation.
"And, without betraying confidences, it may be said
that in informal conferences during the past few months had by
representatives of ASCAP and NAB respectively, I personally feel
that substantial progress has been made toward a solution of the
problem. No solution whatever mall derive from the outcome of
the pending Federal suit, either one way or the other. If
ASCAP wins, we are left precisely where we were. If ASCAP loses,
'Confusion twice confounded' will result.
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nI close this interview by expressing the hope that
the so-called 'little fellow1 amongst the broadcasters may have
a real voice in the councils of the organization before it com¬
mits itself to other steps as foolish as I deem its pressure
upon the Government to bring this suit to have been. "
xxxxxxxxxx
RECENT OLYMPIA, ENGLAND, RADIO SHOW SUCCESSFUL
The annual radio show held at Olympia, England, during
August under the auspices of the Radio Manufacturers' Associa¬
tion was considered by the trade to have been most successful,
Assistant Trade Commissioner Henry E. Stebbins, London, has
reported.
Attendance during the nine days of the show totalled
240,143 compared with 202,000 last year, while sales concluded
were valued at approximately L29, 500,000 compared with L22,563,000
a year ago, the report stated.
Although there are but 124 manufacturers listed as
members of the Radio Manufacturers' Association, 213 manufacturers
exhibited their merchandise on 300 stands.
The chief features of the receiving sets exhibited at
this year's show included noise suppressors, controls by which
selectivity can be increased or reduced, all wave devices, twin
loud speakers to increase the range of sound reproduced, tubes
with clips instead of pins, and battery operated high-frequency
pentodes, hitherto available for electric sets only, the Assistant
Trade Commissioner reported.
The British Broadcasting Corporation and the General
Post Office cooperated in the exhibition, the former providing
a theatre in which visitors could witness actual radio broadcast¬
ing and the la,tter exhibiting a film display and a physical
display.
The show was moved almost in entirety to Glasgow,
Scotland, from which point it will later be transferred for exhi¬
bition at Manchester.
XXXXXXXX
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9/14/34
CENSORSHIP SEEN IF EDUCATIONAL AND RELIGIOUS PROGRAMS FAVORED
An argument to be made by the broadcasters when the
Federal Communications Commission considers October 1st whether
a certain percent of the radio facilities should be allocated to
educational, religious and other non-profit making stations, is
that if this is done, it will amount to censorship of programs.
"The minute the Government starts saying what sort of
a program is to be broadcast, it opens the door wide open for
censorship", a broadcaster observed, "It raises the question as
to whether the Radio Act means to control the type of program
broadcast or simply the mechanical facilities.
"The minute Congress starts allocating frequencies for
religious, educational or any other type of program, there will
be no stopping. It is not a question of whether 1C$, 25 % or 50$
of the radio facilities are to be allocated. It is not a ques¬
tion of the amount because the principle is just as bad if it
were only 1$. "
Broadcasters are being urged to make a bitter fight
at the October meeting because if the Communications Commission
recommends in favor of additional frequencies for religious and
educational stations, it may mean that commercial broadcasters
will lose some of their choice frequencies.
"The broadcasters do not realize apparently, that
from this general hearing, Congress may be expected to formulate
future policies with respect to the American broadcasting system",
said Henry A. Bellows, Chairman of the Legislative Committee of
the National Association of Broadcasters, in an effort to arouse
them to the seriousness of the situation.
"They do not realize that the Commission is required
by law to report to Congress its recommendations for new legis¬
lation. "
Mr. Bellows said that in addition to representatives of
the networks telling their story in their own way, a number of
individual broadcasters wrould testify.
It was said at the National Committee on Education by
Radio, advocates of more time on the air for educational stations,
that a meeting wrould be held September 24th to determine who
will represent them. It is expected that this may be Joy Elmer
Morgan, of the National Education Association, Armstrong Perry,
or Dr. Tracy F. Tyler, the latter two being officials of the
Committee on Education by Radio.
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Owing to the reported illness of Rev. J. B. Harney,
Superior General of the Paulist Fathers, whose complaints were
directly responsible for the hearing, it is doubtful if he will
be present, but if not, the Paulist Fathers will unquestionably
send a representative to take his place .
If the Communications Commission should recommend to
Congress that a certain percentage of the radio facilities should
be allocated to education and religious institutions, they will
face the perplexing situation, according to the broadcasters, of
having to define what "religious" and "educational" broadcasts
really are.
"There would be enough differences of opinion as to
what should constitute a religious broadcast, but they would be
as nothing compared to the different views on educational broad¬
casts", Mr. Bellows said. "At least in the matter of religion
you have certain well defined groups - you have the Roman
Catholic Church, you have the Episcopal Church; you have groups
you can define. But you cannot do that in education. There are
just as many different views on education as there are educational
institutions, and I am prepared to say, as many as there are
individual teachers. "
"What is meant by 'education' in the domain of radio?"
Charles N. Lischka of the National Catholic Educational Associa¬
tion, a member of the National Committee on Education by Radio,
asks and answers, "By education in the air we mean primarily the
same that we mean by education in school - we mean the broadcast¬
ing of such material as is ordinarily presented in regular
educational establishments, although the method of the studio
necessarily differs from the method of the classroom. Moreover,
we have in mind primari].y the education of youth, and adult
education only in a secondary sense. Those schoolmen who hold
religion to be inseparable from education would logically, under
proper conditions, put religion on the air in an educational
rather than a commercial setting.
"For several years radio has been used successfully as
a supplement to the school. The most notable example is the
work of the Ohio School of the Air, under the direction of the
State Department of Education. Another important venture is
the American School of the Air in New York. A number of city
school systems broadcast locally. About fifty colleges and
universities maintain broadcasting stations. Five of these
stations are Catholic, namely: WWL, Loyola University, New
Orleans; WEW, St. Louis University; WHAD, Marquette University;
TOBY, St. Norbert College, West De Pere, Wis. ; and KGY, St.
Martin's College, Lacey, Wash. "
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VAS YOU EFFER IN ZINZINNATI?
The National Association of Broadcasters will hold
the most important convention in its history at Cincinnati
beginning Monday, September 17th, The news broadcasts, the
Broadcasters' Code, the government suit against the American
Society of Composers, and the October 1st hearing of the Federal
Communications Commission on religious and educational programs
will be among the live topics discussed.
Cincinnati, noted for its hospitality and as the
home of WLW, the world's most powerful broadcasting station,
will run out the red carpet. Philip G. Loucks, Managing Director
of the NAB, predicts a record-breaking attendance 0
The Association meetings end Wednesday afternoon but
it is hoped that enough broadcasters may be persuaded to remain
over until Thursday morning to attend a session devoted entirely
to a discussion of the Broadcasters' Code.
XXXXXXXX
RADIO ADVISORY COUNCIL TO MEET IN CHICAGO
October 8 and 9 are announced as the dates for the
forthcoming annual assembly of the National Advisory Council on
Radio in Education which will be held in Chicago. Five sessions
will be at the Drake Hotel and one in the Hall of Science at the
Century of Progress Exposition.
"The Importance of Radio Broadcasting in a Changing
Social Order" is to be the general subject of the conference.
Among the speakers will be Secretary of the Interior, Harold L,
Ickes; Dr. John H. Finley, Associate Editor of the New York Times
Walter Damrosch; John Erskine; President Robert M. Hutchins,
University of Chicago; President Walter Dill Scott, Northwestern
University; Dr. Frederick P. Keppel, President of the Carnegie
Corporation of New York; President Robert M. Sproul, University
of California; President Lotus D. Coffman, University of Minne¬
sota; Colonel Frank Knox, publisher of the Chicago Daily News;
Dr. Harry Woodburn Chase, Chancellor of New York University, and
others.
Carl H. Milam, Secretary of the American Library
Association, is Chairman of the Committee on program which
includes Levering Tyson, Director of the N.A.C.R.E., President
Hutchins and President Scott. Private versus government control
of radio will be one of the live topics of discussion. Robert A.
McMillan, President of the Council, will open the conference with
greetings transmitted by short wave from London.
XXXXXXXX
- 8 -
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9/14/34
BROADCAST ADVERTISING SHOWS DECLINE
Broadcast advertising in July totaled $4,375,463, a
decrease of 19.2/ as compared with June, the National Association
of Broadcasters reports. National spot volume decreased 31.4/ as
compared with June, national network business 22.9/, regional
network volume 9.0/, and local advertising 17.1/. Time sales
in July were 37.6/ below the March peak. It is probable that
this decline is slightly greater than the usual seasonal one.
National spot advertising showed the most pronounced seasonal
decline, dropping to approximately one-half its March volume.
Total broadcast advertising volume during July was
11. 6/ greater than during the same month of 1933. National net¬
work advertising was 37.8/ above last year. Regional network
volume experienced a similar increase, while national spot
volume rose by 4.4/. Local advertising declined 20.4/ as compared
with July, 1933. Lagging retail trade and the slow revival of
many small businesses undoubtedly have been to blame.
The July seasonal decline in broadcast advertising was
somewhat less than that experienced by other media. Magazine
volume dropped approximately 30. 0/, farm paper volume 27.0/,
and newspaper advertising 22.0/. Magazine advertising volume in
July was 25.1/ greater than in 1933. National farm papers
registered a 44.0/ increase over the previous year and news¬
papers an increase of 6.2/.
Heaviest declines in non-network advertising during
the month occurred in the over 5, 000-watt station class. July
revenues of these stations were 36.0/ less than in June. Reven¬
ues of stations of the 250-1, 000-watt class were 14.1 / lower
than in the preceding month, and those of 100-watt stations
9.0/ less. Low-power regional stations and local stations were
in a slightly better position than in July, 1933, while other
classes of stations were somewhat below the level of the previous
year.
The Mountain-Pacific Coast area alone recorded gains
during the month, time sales in this section increasing 4.4/
over June. Far Western revenues were 41.1/ above last July,
while those of the South Atlantic-South Central area showed an
increase of 22.0/. Advertising in the New England-Middle
Atlantic district was 11.6/ above last year, and that of the
North Central area 5. 6/.
Electrical transcription volume declined 18. 9/ during
the month, dues principally to a dropping off of local business.
Live talent volume declined 16.5/, record volume 50. 0/, and
spot announcement volume 8.4/.
XXXXXXXX
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9/14/34
SALES AGREEMENT REPORTED AIDING GERMANY RADIO TRADE
The receiving set sales agreement arranged between
the Radio Equipment Manufacturers' Organization and the various
radio dealers associations of Germany in 1933, has now been
renewed and will continue in force until December, 1935, accord¬
ing to a report by Vice Consul C. T. Zawadzki in Berlin,,
The sales agreement has, in general, had a favorable
effect on the conditions in the German radio industry and trade,
having resulted in better ordered discount rates and the elimi¬
nation of alleged unfair trade practices, the report stated.
One favorable effect of the sales agreement has been
the reduction in the number of dealers in radio receiving equip¬
ment, it was stated. It has been estimated that there were
approximately 60,000 retailers and 1,500 wholesalers of radio
receiving sets in Germany at the beginning of 1933 among which
were numbered many unemployed persons who retailed sets from
house to house.
The registration policy for the retail trade contained
in the agreement resulted in reducing the number of retailers to
about 37,000 while wholesalers were reduced in number to
approximately 750, the Vice Consul reported.
XXXXXXXX
CALLS FORD LICENSE CANCELLATION CRACKDOWN
Among other things in his alleged proof of his censor¬
ship accusations against President Roosevelt, Senator Thomas D.
Schall, of Minnesota, said:
"On the ‘first day after the Communications Act was
passed, the Radio Commission issued against the three radio
stations of the Ford Motor Company - stations used for S.O.S.
signals to ships on the Great Lakes in time of storm and as
light beacons for airships of the Ford company and the general
public - a report recommending cancellation of their charters.
This is in revenge because Ford refuses to carry a Blue Eagle
and subject his business to the dictatorship of 'Crackdown'
Johnson. "
Senator Schall reiterated the charge that the Com¬
munications Act gave the government control of the radio and
wire communications.
XXXXXXXX
10
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9/14/34
HARRY A. WOODMAN NAMED KDKA GENERAL MANAGER
Harry A. Woodman, veteran broadcasting executive, has
been made general manager of KDKA, Pittsburgh. Woodman, who
for years has been traffic manager of the National Broadcast-
ing Company, succeeds William S. Hedges, who some months ago
was named manager of owned and operated stations of the NBC.
The new KDKA general manager, a native of Portland,
Maine, was graduated from Bates College. He became interested
in the possibilities of radio during the early days of broad¬
casting, and joined the staff of WEAF, then owned by the A. T. & T.
in 1925, as sales and station contact.
He assisted in the formation of the first experimental
networks and when* the NBC was formed in 1926, taking over WEAF
among other stations, Mr. Woodman joined the new organization as
traffic manager, a post which he has held ever since.
X X X X X X X X X X
ANOTHER LAWYER FOR FCC
A. L. Stein, of Chicago, has been appointed to serve
in the Legal Division of the Federal Communications Commission.
Mr. Stein was born in Eveleph, Minn. , is a graduate of Harvard,
and has been teaching in Chicago on the subject of public util¬
ities.
XXXXXXXX
APPLICATIONS RECEIVED BY BROADCAST DIVISION, FCC
September 12 - WI.1AL , National Broadcasting Co. , Inc. ,
Washington, D. C. modification of license to use present licensed
main transmitter as auxiliary and present licensed auxiliary as
the main transmitter; A. L. Chilton, Kilgore, Texas, C.P. to
erect a new broadcast station to be operated on 1200 kilocycles,
100 watts, unlimited time; WAMC , Raymond C. Hammett, Anniston,
Ala. , modification of C.P. authorizing rebuilding of station
requesting approval of transmitter site, installation of new
equipment and extension of commencement and completion dates; Leo
J. Blanchard, Fredericksburg, Texas, C.P. to erect a new broad¬
cast station to be operation on 1220 kilocycles, 250 watts, shar¬
ing time with WTAW; Clinton Broadcasting Corp, , Clinton, S. C.
C.P. to erect a new broadcast station tc. be operated on 1120 kilo¬
cycles, 500 watts, daytime amended to request 620 kilocycles,
transmitter site to be determined; Maynard Dowell, San Diego,
Cal., C.P. to erect a new broadcast station to be operated on
1150 kc. , 100 watts, unlimited time.
X X X X X X X
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9/14/34
I
EUROPEAN RADIO NOT SUITED TO U.S., ANNOUNCER FINDS
Americans would, not be happy under any of the broad¬
casting systems now in vogue in Europe, John S. Young, National
Broadcasting Company announcer, declared on arriving in New York
recently after an extensive survey of broadcasting methods in
Europe.
Mr. Young, only NBC announcer with a Doctor of Laws
degree, has just returned from Oxford University, England, where
he went at the invitation of the Warden of the King 1 s English
to deliver a series of lectures on American speech. He also
engaged in research at Cambridge University and made an inten¬
sive study of British broadcasting.
From his observations abroad., Young concludes that
"the test by which any national system of broadcasting must
stand or fall is whether the nation caters to the needs of its
own listeners and adequately fulfills their distinctly national
characteristics of mind and enjoyment in terms of the national
culture. "
What is good for one country in radio broadcasting may
not be good for another because of differences in social struc¬
ture and traditions, the announcer pointed out„
G-erman broadcasting, Mr. Young said, has changed from
an aggregation of privately owned companies into a publicly-
owned system which takes its instruction from the Minister of
Propaganda.
Russian broadcasting, while furnishing excellent music,
exists to inculcate Communist ideals among the people, he ob¬
served.. As for France, there is a "mixture of elements, some
analogous to England and some to America. 11 Both direct govern¬
ment operation of broadcasting through the Post Office and
operation by private companies are in force in France.
Mr. Young is of the opinion that "the people of this
country would not be happy under any broadcasting system in
vogue in Europe. "
X X X X X X X X
NEW APPLICATIONS GRANTED BY TELEGRAPH DIVISION
September 12 - Associated Press, Portable-Mobile,
2 C.P.s, frequencies 31100, 34600," 37600, 40600 kc. , power 0.5
watts, also licenses covering same; City of Springfield, Ohio,
Portable-Mobile (2 applications) C.P. frequencies 30100, 33100,
37100, 40100, 86000 to 400000, 401000 kc. and above, 9 watts;
United Press Associations, Portable ( 2 applications), C.P. (Exp.
Gen. Exp.) 27100, 3ll00, 34600, 37600 kc. , power 0.5 watts,
also licenses covering same; Bell Tel. Labs., Inc., Portable-
Mobile used principally in State of N.J. , license 30000 to 56000,
60000 to 86000 kc. , 1 KW power.
X X X X X X X X
INDEX TO ISSUE OF SEPTEMBER 18, 1934,
New B.B.C. Radio Station Opensc . 2
Cincinnati Hears About Broadcasting Under The New Deal . 3
RMA Board Approves Separate Radio Code Plans . 6
Increased Export Trade Under New Reciprocal Treaties . 6
San Francisco Talks To Hawaii Over Television Tube . 7
Network Program Advertising Begins. . . 8
Dill Speech May Lead To Radio News Association Formation . 9
One Cent Runs Radio l-jjr Hours . 10
Senator Dill’s Proposal Criticized By Harris . 11
FCC Starts Free Telegram Probe . 11
Industry Notes . 12
Former Commissioner Starbuck Divorces Wife . .12
No. 758
Inc I
September 18, 1934.
NEW B.B.C. RADIO STATION OPENS
Using five times the power of the nine-years-old. veteran,
"5XX", at Daventry, England, the new long-wave station of the
British Broadcasting Corporation has been officially opened. It
is at Wychbold, about three miles northeast of Droitwich, on the
Droitwich-Birmingham road.
"Technically the 'National' transmitter is as nearly
perfect as knowledge can make it, and, for the present, is the
best broadcasting station in the world", Capt. Ernest H. Robinson,
radio expert, observes. "It is self-contained, with its own
generating plant, and a twin set of Diesel oil engines as the main
prime-movers. Its two la.ttice-gird.er masts are each seven hundred
feet high, nearly twice as high as the cross on the dome of St.
Paul ' s. "
When Droitwich is thoroughly established, the existing
National transmitters will close down* New regional stations are
to come into operation for the North Scottish, North Eastern, and
Belfast areas. When the work is completed 98 per cent of the
inhabitants of England, Scotland, Wales, and Northern Ireland should
have a thoroughly good service from one transmitter and something
between 85 and 90 per cent, an equally good service from two trans¬
mitters. The B.B.C. engineers define "good service" in a very
technical way, but the generally accepted meaning of the word.s is
the kind of reception one can get within about forty miles of a
Regional transmitter.
In most districts Droitwich will be very much more power¬
ful than "5XX". Also its quality is much better than that given
by the old station.
"It wall have a profound effect on listening in remote
districts, and should mean a considerable increase in the number
of licenses issued this winter", Captain Robinson continues. "Those
who dwell within twenty or thirty miles of the present twin sta¬
tions have little or no idea of the difficulties which those farther
afield have in receiving the present National stations, difficul¬
ties which are complicated by the low level of signal strength of
'5XX' in many places and its undoubtedly poor quality.
"On the other hand, there are a great many who are fa.irly
close to the present National transmitters who will be sorry when
they close down and Droitwich provides rhe only National programmes.
The North of London is a district that is likely to be particularly
effected. Some, living almost under the shadow of the Brookman's
Park aeriel, who have been getting both programmes on a few feet
of wire slung up around the room, will find that they must put up
an outdoor aerial to get Droitwich at the strength they are used
to from London National. "
X X X X X X X X
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9/18/34
CINCINNATI HEARS ABOUT BROADCASTING- UNDER THE NEW DEAL
"What we do will be with a minimum of breaking down
the present allocation and assignments thereunder. What we
direct will be evolutionary rather than revolutionary . What we
shall ask of you is simply that you maintain the same progressive
standards on the technical side that the public demands you shall
maintain on the side of culture and entertainment. "
That, Hampson G-ary, Federal Communications Commissioner,
told the National Association of Broadcasters' Convention at
Cincinnati, is the spirit of broadcasting under the New Deal.
Mr. Cary said the Commission recognizes there must be
a sound economic as well as technical basis for the broadcasting
structure. But the technical basis must not be disturbed if it
will seriously affect adequate service to the listener. The
listener comes first.
There is certain advertising being done on the radio
which is unfortunate to say the least, Commissioner Cary asserted.
"We've all heard people on the air who should not have
been on the air", he continued. "Here is presented the opportun¬
ity for you to do some housecleaning. Is it not practicable in
our free land for the radio advertisers themselves, together with
the radio stations and networks, to develop their own school of
ethics, guiding themselves?"
Mr. Cary again emphasized the fact that the Commission
has no power of censorship and added, "And we desire none. The
United States is the land of freedom of speech, freedom of the
press, and radio should be maintained as a free American enter¬
prise. The Communications Commission has no mrish to dictate
what manner of entertainment or discussion shall go on the air.
It is not desirable or necessary. We went the broadcasters them¬
selves to maintain, for the sake of their own continued existence,
a clean, wholesome American attitude and balance, the kind that
good taste and common sense suggest. "
Broadcasters are facing legislative problems both more
serious and more acute than any they have faced in the past,
Henry A. Bellows, Chairman of the Legislative Committee warned
the convention.
"Don't for one moment forget that the only reason why
we escaped special legislation in the last session of Congress
was because such legislation was expressly reserved for the ses¬
sion which begins next January", Mr. Bellows said. "The President
has told the Federal Communications Commission to make recommenda¬
tions to Congress, and unquestionably the Commission will do so.
Even if, as we hope, its recommendations call for no radical
changes, we are still facing the certainty of legislative attacks
in the next session of Congress.
3
9/18/34
"This, after all, is the New Deal, which means in the
minds of a great many people a vast extension of government con¬
trol over business. It means an era of unprecedented legis¬
lative experiment. It means that many of the rights which used
to be regarded as firmly established can no longer be considered
as stable. The broadcasting industry has got to justify its
existence, but it has got to do a good deal more than that. It
has got to prove that its operation is in the public interest,
and that any material change in the method of that operation
would hurt the public. "
The immediate issue before the broadcasters is the
showing they must make on behalf of American broadcasting in the
hearing before the Radio Division of the Federal Communications
Commission October 1.
"I have no hesitation in saying that this hearing is
one of the most important events in the entire history of Ameri¬
can broadcasting. It is up to us, not merely to present a case
which will justify the Commission in recommending no material
changes in the law as it affects broadcasting, but still more to
establish so strong a record that we shall have a conclusive
answer to every attack which can be made on our industry and our
work", the Chairman concluded.
"After the hearing will come the session of Congress,
and, as I have said, no matter what the Commission may report,
attacks on the broadcasting industry are bound to be made. We
shall have the Tugwell bill, possibly in a more drastic form
than ever. We shall have proposals for automatic copyright. We
shall have bills seeking to take away part of our facilities, and
bills seeking further government regulation of our activities. "
In dealing with the subject of radio advertising and
the Federal Trade Commission' s relation thereto, Ewin L. Davis,
Vice Chairman of the Commission, said, in part, in addressing
the convention:
"Radio broadcasting has become a very important factor
in our social, political and economic life. It takes into the
remotest homes throughout the land the voices of the great leaders
of thought, and a wide variety of music and other forms of enter¬
tainment. On occasions a large portion of our population are
brought into a single radio audience.
"In England and other countries, the cost of radio pro¬
grams is met by charges to the owners of receiving sets. In the
United States most programs are paid for by advertising sponsors.
I am advised that for the twelve months ending last June the
national radio advertising bill exceeded $65,000,000. Yet the
radio art and the radio industry are still in their infancy. I
mention this to emphasize the importance of the subject. "
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Mr. Davis emphasized, the point that the Federal Trade
Commission neither claims the authority, nor has any desire to
censor advertising. Its sole purpose is to curb unlawful abuses
of the freedom of expression guaranteed by the Constitution. To
put it tersely, he said, the Commission does not dictate what an
advertiser shall say, but may indicate what he shall not say.
The processes of the Commission are not punitive, but injunctive.
In response to the Commission’s request that all of
the networks, transcription companies and individual broadcast¬
ing stations file with them copies of their advertising con¬
tinuities, all of the networks (two national and eight regional)
complied; of the 36 transcription companies, 9 small companies
have not responded; of the 596 broadcasting stations now operat¬
ing, 593 have responded.
"The Commission has received nearly 180,000 continuities",
Judgp Davis reported., "They have made a preliminary detailed
examination of 146,117 of such continuities. Of these 125,126
were found unobjectionable and filed without further action;
20,941 were distributed among members of the Special Board for
further checking and possible investigation. There remain on
hand not yet examined approximately 33,000 continuities.
"On July 30th the Commission advised those stations
which had. complied that they might discontinue forwarding con¬
tinuities until further notice, although the network and trans¬
cription companies will continue sending their continuities.
Further calls will be made upon the individual stations from time
to time as the Commission is able to handle the continuities.
"The Commission has been very much gratified by the
splendid spirit of cooperation shown by nearly all of those
engaged in the radio broadcasting industry", Mr. Davis concluded.
"We have been much pleased, that this new proced.ure on our part
has been received by the industry in the same spirit in which it
is undertaken. It is refreshing that such an overwhelming per¬
centage of your industry are so deeply interested and so fully
appreciative of the importance of permitting only truthful and
honest advertising over the radio — thus not only preventing
the violation of the law through that medium, but also preventing
advertisers from defrauding the public and thereby causing a
loss of listener confidence in radio advertising. "
X X X X X X X X
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9/18/34
RMA BOARD APPROVES SEPARATE RADIO CODE PLANS
Arrangements negotiated by the RMA Code Committee with
the National Industrial Advisory Board and NRA at Washington for
independent Code operation for the radio manufacturing industry
were approved by the Board of Directors of the Radio Manufacturers'
Association at its recent meeting in New York City. The Board
also tentatively made . new plans for a national radio sales pro¬
motion campaign this Fall and early Winter.
Capt. William Wparks, of Jackson, Mich., Chairman of
the RMA Special Code Committee, and Bond Geddes, Executive Vice-
President and General Manager, detailed to the Board an agree¬
ment reached between RMA and NEMA, in recent conferences with
the National Industrial Advisory Board, providing for an inde¬
pendent Code status and Code Authority for the Radio Industry.
The details are to be worked out by the RMA Code Committee in
early conferences with NEMA and the Washington authorities.
Powel Crosley, of Cincinnati, Chairman of the RMA
committee in charge of the "Five Point" national radio promotion
plan, developed jointly by the RMA and Radio Wholesalers r
Association, presented his report to the Board whereby it is
hoped to place the new plan in operation next November. Its
institution by manufacturers, with their exclusive financial
support and direction, is contemplated, to effect an immediate
beginning of at least part of the national promotion activities
embraced within the original "Five Point" plan.
XXXXXXXX
INCREASED EXPORT TRADE UNDER NEW RECIPROCAL TREATIES
Efforts to increase foreign markets are being made by
the Radio Manufacturers' Association, according to Bond Geddes,
in behalf of the radio industry in connection with present
negotiation of new reciprocal treaties with many foreign count¬
ries. Under the new "tariff bargaining" law the first reciprocal
treaty with Cuba was signed August 24 and provided for increased
concessions on radio products. The margin of preference to U. S.
exporters on radio sets, tubes, parts and accessories was increas¬
ed from thirty to thirty-five per cent. On sets the new advalorem
rate is 26 per cent as compared with 28 per cent, while the new
Cuban rate on tubes, parts and accessories is 19-| per cent as
against 20 per cent under the old treaty.
The RMA is advised that the State Department has arrang¬
ed for negotiations of new reciprocal treaties with Brazil, Costa
Rica, El Salvador, Guatemala, Honduras and Nicaragua, and informa¬
tion in connection with such treaties must be presented before
October 15th. The RMA is acting to present the interests of
the radio industry in the new reciprocal treaties.
XXXXXXXX
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SAN FRANCISCO TALKS TO HAWAII OVER TELEVISION TUBE
Radio history was written on the Pacific Coast last
week, writes Earle Ennis in the San Francisco Chronicle , when
San Francisco talked to Hawaii and ships at sea over a Farnsworth
"cold-cathode" television tube, operated for the first time as
an oscillator,.
The conversation, effected in Continental code from a
loca.1 sta.tion, officially inaugurated a new system of wireless
communication.
The demonstration was conducted at the South San
Francisco laboratories of Heintz & Kaufman, Ltd. , television
licensees, on Tanforan Avenue. The new tube, originally designed
as a televisor, is now applicable to commercial communication
work.
The demonstration was conducted in the presence of
scientists, radio engineers, newspaper men, wire service repre¬
sentatives and university experts.
"A score of Dollar Line ships in all parts of the world
kept an all-night watch for the new signals from the South San
Francisco station", Mr. Ennis writes. "Immediately after the
tests began Hawaii reported reception there with loud speaker
volume, and on the heels of this came reports from the ships of
the listening brigade that the signals were being received by
them all over the world. The demonstration was regarded by radio
engineers as an amazing and outstanding success.
"The tube used was a special type television tube in¬
vented by Philo T. Farnsworth, San Francisco inventor of Tele¬
vision Laboratories, Inc. , which is without filament or grid and
operates 'cold' or without heat. Before the astonished gaze of
onlookers, electrons were started in motion in the tube, which
resembles a fruit jar. The moving electrons, coasting freely
in the tube, were bounced and rebounced back and forth, each
time multiplying or breaking up into additional streams of
electrons.
"This multiplying action of the tube furnished the
'oscillations1, which piped onto the antenna, through conventional
circuits set up the well-known radio pul sections that carry the
words of the voice, or the broken chatter of the radio key, into
the far places of the world. The received impulses are high-
pitched, flute-like in quality and resemble a crystal-controlled
transmitter both in quality and frequency stability.
in the
"The tube used/demonstration had an output rated at 500
watts when piped through the conventional amplifier circuits. The
circuit used was simplicity itself - the tube, the amplifier,
the necessary tuning inductances, and capacities providing the
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well-known LG elements - and the power supply. The tubes may be
constructed to enormous size capable of handling power rated in
kilowatts, according to radio engineers,
"The amazing part of the whole affair was that Farns¬
worth had no idea when he developed the tube several years ago
that it would be of value in the commercial radio communication
field. He was seeking a device that would replace the coarse
and inefficient scanning disks of early television systems. In
his hunt for a cold cathode televisor he brought forth a device
that not only brings world happenings to a ground glass observa¬
tion screen as clearly as a movie, but one that multiplies its
own impulses to an astonishing degree, and can be substituted in
radio transmitters for the handling of high power as well.
"The potentialities of the new tube in the communication
field have not been tapped. But sufficient work has been done by
the Heintz & Kaufman interests to assure engineers of the practi¬
cal application of the Farnsworth tube to telegraph work in the
communication field.
"The Heintz & Kaufman concern are affiliates of the
Dollar Steamship group and manufacture all of the apparatus now
used by Globe Wireless, Inc. , whose San Francisco station is at
Muscle Rock. They have been licensed by Television Laboratories,
Inc. , to manufacture transmitting equipment using the new Farns¬
worth tube. "
XXXXXXXXXX
NETWORK PROGRAM ADVERTISING BEGINS
There appeared in the New York Times and 34 other lead¬
ing metropolitan Sunday papers last Sunday for the first time,
"Network Headliners", a syndicated advertisement giving briefly
the time, feature, station and sponsor of the Sunday radio programs
It was a neat box arrangement about half a column in length and
two columns wide - a sort of time-table for the day's radio high¬
lights.
The networks themselves have nothing to do with the
advertising which is solicited direct from the sponsors by the
advertising agency. The idea is to centralize attention on the
shows advertising instead of leaving them with no identifica¬
tion marks in the radio programs as listed by the dailies.
XXXXXXXXX
- 8 -
V. *
9/18/34
DILL SPEECH MY LEAD TO RADIO NEWS ASSOCIATION FORMATION
So great a sensation did the speech of Senator C. C.
Dill, of Washington, cause at the Cincinnati Convention of the
National Association of Broadcasters, that it may result in the
formation of an independent association such as was advocated
by Senator Dill to collect their own news.
At the conclusion of Senator Dill's speech, which was
greeted by great applause and the delegates rising in their seats
as a further tribute, A. J. "Hollywood" McCosker, President of
the National Association of Broadcasters, declared that if the
broadcasting of additional news as urged by Senator Dill had
nothing further to recommend it than that it was in the "public
interest to do so", he would be for it.
"To show how, resorting to the vernacular, 'up my
alley', Senator Dill's suggestion is", Mr. McCosker declared, "I
have, since its suggestion, refused to sign a renewal of the Radio-
Press Bureau agreement."
Senator Dill declared that the Press-Radio Bureau is
a failure. Of the 141 users of the service he had heard from,
Mr. Dill said 100 had replied that it was unsatisfactory.
"It satisfies nobody because it flies in the face of
progress. The listeners are disgusted with it. Most stations
refuse to use it", the Senator said. "Many newspapers say it is
unsatisfactory. Radio stations and newspapers all over the
country are trying all sorts of schemes to furnish news by radio
in violation of the spirit of the agreement. Even most of the
stations now using the Press-Radio bulletins pronounce them
highly unsatisfactory.
"Either the press associations must change the terms of
the agreement so radio stations can give their listeners up-to-
the-minute news and for longer periods of time, or radio stations
will find or create means and methods for securing news entirely
independent of the press associations. "
Senator Dill said it was unbelievable that the news¬
papers generally don’t use radio to their advantage (he remarked
that 68 "wide-awake" newspaper-owned stations do) or that they
should try to throttle and handicap it to the point where they
force radio stations to set up a competitive short-wave facsim¬
ile service, which a few years hence may easily become so power¬
ful that it will prove a Frankenstein to them by printing radio
newspapers simultaneously all over the world.
The Senator said that radio stations are handicapped
because they are not organized to secure news by radio.
"Let me now outline what an associated radio news
organization of 100 or more stations could do", Senator Dill went
on.
9
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9/18/34
"First, it could either induce press associations and
newspapers to sell news flashes and brief news reports for use by
radio stations, or failing in that, it could finance the begin¬
ning of a great radio news service.
"Second, an associated radio news organization of 100
or more stations could secure recognition for its correspondents
on an equal basis with press associations,
"Third, such an organization could send its news to
member stations by short waves to be received on automatic short
wave silent printers in station officers. This short wave printer
is not a dream of the future. It is a reality now. I have seen
it in operation.
"Fourth, such an organization could secure licenses for
its members to use the necessary short waves to pick up sport
events or celebrations where wire service is not available. The
Associated Press and United Press often secure short waves for
such purposes, but individual stations in small communities find
it almost impossible.
"Fifth, if the newspapers should start a fight on radio
because of news by radio and refuse to print station programs,
as they have repeatedly threatened to do, such an organization
could easily print their own national weekly publication such as
the Radio Times of the British Broadcasting Corporation. It
could then copyright radio programs and no newspaper would dare
print them except by permission and then in the form the organi¬
zation might direct. When it is possible to transmit newspapers
by facsimile, it will be able to compel newspapers to treat
fairly or face a new kind of competition in their own field.
"Sixth, such an organization could keep in direct
touch with the impending developments in short wave facsimile
transmission, that will certainly revolutionize the art of com¬
munication. Radio broadcasters should have such an associated
radio news organization to take advantage of these developments
as fast as they are made, in order to fulfill the true destiny
of radio in presenting news first to all the world. "
XXXXXXXX
ONE CENT RUNS RADIO !■§■ HOURS
Calculations made by the New York Edison Company are
that 1 cent's worth of electricity will provide 3 half-hour
radio programs. Also 1 cent's worth of electricity will run a
fan for 3 hours and 20 minutes and a clock for 2-1/3 days.
XXXXXXXX
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SENATOR DILL'S PROPOSAL CRITICIZED BY HARRIS
E. H, Harris, Chairman of the Publishers' National Radio
Committee, criticized last night ( Sept. 17) the proposal of
Senator Clarence Dill that broadcasters organize a news-gathering
agency to compete with newspapers and press services,,
Harris said such a proposal "is a bid for public sup¬
port of a potential semiofficial Government news agency, similar
to the ones existing in certain European countries. "
"Since the newspapers of the United States", Harris
said, "are now giving to the broadcasters the cream of the news,
taken from each of the three of their National and international
gathering organizations, the maintenance of which costs the news¬
papers more than $25,000,000 annually, Senator Dill's proposal
can only be interpreted as an attempt to build a- nemrs- gathering
organization that will be under the direction of agencies licensed
by the Government.
"When the Chairman of the Senate Committee, that wrote
the Communications Bill and recommended its passage to Congress,
advocates the organization of a National news-gathering organiza¬
tion, under Government license, he in effect is proposing a
potential censorship of radio news and the building of a news
machine for propaganda purposes.
"The people of the United States have not forgotten
that radio broadcasting is under strict Government license and
supervision, and that the newspapers' National news-gathering
agencies are still free from Government supervision, license and
restriction "
XXXXXXXX
FCC STARTS FREE TELEGRAM PROBE
The Federal Communications Commission last week issued
an order directing all telegraph companies to report the names
and addresses of all persons for whom telegraph messages were
handled between January 1st and September 1st of this year free
of charge, or a charge less than the published rate. The
reasons must be given.
The carriers were asked, too, how much revenue would
have accrued at regular charges between January 1st and September
1st, and separately for June, 1934.
XXXXXXXX
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INDUSTRY NOTES
There was no meeting of the Broadcast Division of the
Federal Communications Commission today, Chairman Gary being in
Cincinnati where he spoke before the NAB convention,,
The annual Electrical and Radio Exposition will open
tomorrow, September 19th, at Madison Square Garden. For eleven
days, more than 135 manufacturers of radio and electrical appli¬
ances will display their latest wa.res.at this New York Show.
Three RMA engineering committees will hold meetings
this week in New York. Further work on radio interference pro¬
blems will be considered by the Joint Coordination Committee on
Radio Reception of RMA, NEMA and EEI next Thursday, Sept. 20.
The RMA Facsimile Committee, working on the engineering
proglems and development of facsimile reception will meet in New
York on Friday, Sept. 21, and the Tube Engineering Committee on
Saturday, Sept. 22.
A message from President Franklin D. Roosevelt, to be
read by James A. Moffett, administrator of the Federal Housing
Administration, at the opening of the National Electrical and
Radio Exposition in New York, will be heard during the Byrd
Expedition broadcast on the WABC- Columbia network tomorrow night,
Wednesday, Sept. 19, from 9:00 to 9:30 P.M. E.S.T.
Keeping line noises out of present-day all-wave recep¬
tion is the function of the new TACO H-F All-Wave Line Filter
just announced by Technical Appliance Corp. , 27 Jackson Ave. ,
Long Island City, N. Y.
XXXXXXXXX
FORMER COMMISSIONER STARBUCK DIVORCES WIFE
William D. L. Starbuck, of New York, patent attorney and
mechanical engineer and until last February a member of the
Federal Radio Commission, having served there for five years,
obtained a divorce at Reno yesterday (Sept. 17) from Frances
Sayre Starbuck of Egremont, Mass. Mr. Starbuck charged five
years' separation. The decree was won on default when Mrs. Star-
buck made no appearance. The case was filed July 18th.
XXXXXXXX
- 12 -
Heinl Radio Business LeM!®!
2400 CALIFORNIA STREET
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WASHINGTON, D. C. 1934
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INDEX TO ISSUE OF SEPTEMBER 21, 1934c
Tennessean Is Broadcasters' New President. . ... . 2
U.S. Suit Against Composers Speaks For Itself, Says Schuette..4
Rayburn Violates Own Radio Law. . . . 5
Microphonic NAB Convention Pickups . . . . . 6
"Interference Conference" Planned By RMA„ . 7
Wheeler, New SCC Possibility, Favors Radio Govt. Ownership. ... 8
Telegraph Division Of FCC Issues New Order . 9
ABS Establishes New Production Department. . 9
Postal And I.T. & T. Announce Operating Expenses.. . 10
Bayer Bows To Ad Order . 11
Demonstration Period For Radio Sets In South Africa Reduced. .11
Applications Granted By Telegraph Division, FCC . 12
No. 759
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September 21, 1934.
TENNESSEAN IS BROADCASTERS' NEW PRESIDENT
In keeping with the New Deal, a new slate of officers
was elected by the National Association of Broadcasters at
Cincinnati. J. T. Ward, of Station WLAC, Nashville, Tenn. ,
defeated H. K. Carpenter, of WHK, Cleveland, for the presidency
by a vote of 96 to 55„ Lambdin Kay, famous old announcer of WSB,
Atlanta, was elected 1st Vice-President, and Charles S. Meyers
of KOIN, Portland, Ore. , 2nd Vice-President. Isaac D. Levy, of
WCAU, Philadelphia, was chosen as Treasurer.
A. J. McCosker, whose record as President was highly
praised, was urged by friends to run for a third term but
declined in the following letter:
"Because of the demands on my time arising from the
operation of the WOR 50 KW transmitter shortly to be completed,
I request that my name not be reconsidered in renomination for
the presidency. Having served two terms as President, I feel
I have made the contribution to the Association which might be -
expected of me. "
The name of Leo Fitzpatrick, of WJR, Detroit, was placed
in nomination for President in opposition to the Administration
slate but Mr. Fitzpatrick declined to run.
The following Directors were elected: Three years -
A. J. McCosker, WOR, Newark; Leo Fitzpatrick, WJR, Detroit;
Harry Butcher, WJSV, Washington; John G-illan, WOW, Omaha, and
G-ordan Persons, WSFA, Montgomery, Ala. ; One year - Harold
Wheelahan, WSMB, New Orleans; Stanley Hubbard, KSTP, St. Paul,
and Powel Crosley, Jr., WLW, Cincinnati.
According to Miss Seibert in charge of the registration
booth, 370 delegates registered which was about 100 more than
last year and set a new record. The crowd taxed the capacity for
the smoker at the Elks Club given by the Cincinnati Convention
Committee, of which Powel Crosley, Jr. was Chairman, and the
banquet Tuesday night was attended by almost 400, Edwin M. Spence,
Chairman of the Convention, said.
Entertainment at the banquet was furnished by WLW and
there was quite an ovation for Joseph A. Chambers, Chief Engineer
of the station. The golf prize cup given by Broadcasting
Magazine was presented to Lewis Allen Weiss, (General Manager of
WJR, Detroit.
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Radio was not invented to bore tlie human race, William
Hard, radio commentator and writer, observed; every broadcasting
station must therefore amuse.
"Broadcasting is done on public property", Mr. Hard
continued. "The true real estate upon which it operates is the
ether. Bands of the ether are allocated to broadcasters every¬
where by the public authorities. The broadcaster is a tenant
of a public domain. "
Speaking of the advertising situation Mr. Hard remarked:
"The power of advertisers in this country is today
limited by the fact that they are so enormous in number and so
disassociated in interest. They do not and cannot act as one.
Let now the government, however, extend its domination of all
business to the point of controlling all advertising through one
agency in Washington and. there will not be left one free news¬
paper or one free radio station in the United States. "
Control of broadcasting can be either from within or
without, Col. Thad H. Brown, of the Federal Communications Com¬
mission said.
"These are the only two possibilities", the Commissioner
explained. "I submit to you sincerely and frankly that it is
not the desire of the Commission to take from the broadcaster
the right to control his activities. Instead, it is our stead¬
fast desire to vest in the broadcaster all powers of control
properly belonging to him. It is rightly your job and you are
the ones properly qualified to do the job of directing broad¬
casting for the benefit9and to protect the rights of the millions
of American listeners. ,f/
Colonel Brown evidently tried to pour oil on the
troubled waters of newspapers and radio stations by saying:
"Radio and its relations with the press should be given
consideration also with mutual co-operation as the ultimate goal.
Theirs is not a business of strict competition, properly viewed.
Changes and adjustments between press and radio must be forthcom¬
ing. In the matter of supplying news, a definite understanding
is also possible. If the press is faithful to its creed to seek
to reach the greatest number of people with news in the least
space of time, it cannot afford to overlook the radio. Nor can
radio continue to prosper without the continued cooperation of
the press. "
Broa.dcasting is the most regulation of American indus¬
tries, Alfred J. McCosker, President of the National Association
of Broadcasters, said.
"We have had no quarrel about that. But we must be
on the alert to prevent over-regulation", Mr, McCosker told the
convention. "It is only a short step from proper regulation to
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9/21/34
that character of Federal control which might impair, if not
wreck, our freedom of operation. 11
The speaker predicted that any "class allocation by
Congress1' such as proposed in the October 1st religious and
educational hearings, "would, undermine our industry, and might
lead eventually to nationalization of American broadcasting, after
the fashion of continental systems. "
Despite the fact that the membership of the National
Association of Broadcasters had increased its membership 100 over
1933, bringing the total to 370, income from dues failed to meet
operating expenses during the first nine months of the year. The
deficit was about $5,000, Philip 0. Loucks, Managing Director,
revealed and was made up from the reserve funds of the Association
which now has a bank balance amounting to $4,000.
The annual income derived from dues amounted to
$35,139.81; operating expenses totaled $39,598.13,
X X X X X X X X
U.S. SUIT AGAINST COMPOSERS SPEAKS FOR ITSELF, SAYS SCHUETTE
Everything which need be said is summed up in the
Government anti- trust suit against the American Society of Corn-
powers, Oswald F. Schuette, copyright advisor, told the National
Association of Baordcasters at Cincinnati.
"Everything which has transpired since the last meeting
of the Association is in that suit", Mr. Schuette went on. "The
Government means to take away , if possible, the extortionate
power of ASCAP. I shouldn't be surprised if, for the time being,
the Composers will behave. I don't believe they will pursue
their arbitrary methods while the suit is pending. "
Referring to the interview with E. C. Mills of the
Composers, which appeared in the Heinl News Service, Mr. Schuette
said:
"I am glad Mr. Mills said there is nothing to be gained
by making faces and gnashing teeth at each other. He was un¬
fortunate in saying that the Composers were threatened with the
suit as an alternate to making a rate for the broadcasting license
fee. The rate had nothing to do with it.
"Mr. Mills' statement that ASCAP is willing to cancel
the contract of any dissatisfied station is as absurd as if a
Milk Trust, in some city whose milk supply it controls, were to
say that any householder who dislikes its prices can cancel his
contract and go out in the country and buy his milk from the
farmer, "
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9/21/34
Mr. Schuette said that if ASCAP is dissolved, a nucleus
for a clearing house for broadcasters' music would be found in
the NAB Radio Program Foundation. He said a lot of Federal Court
actions are allowed to go to sleep and that this one shouldn't be
allowed to slumber.
J. C. Hostetler, of Cleveland, partner of Newton D.
Baker, copyright counsel, also referred to Mr. Mills' interview
and said he hoped the latter was correct when he said that sub¬
stantial progress had been made during the past few months in
informal conferences between the Composers and the Broadcasters.
"I have no desire to be offensive ", Mr. Hostetler said.
"I expect to see Mr. Mills in Nev^r York for further conferences. !t
"We want to treat ASCAP fairly" , said Isaac D. Levy,
of Station WCAU, Philadelphia. "We want to treat the composers
fairly. We want to pay them what the music is really w^orth and
not what Mills thinks it's wrorth.
"We don't want ASCAP to be hammering our heads every
time a new contract is made. We want longer time contracts. We
don't want them to be demanding another increase before the ink
on the contract ws have just signed is dry.
"The ASCAP does some worthy things, such as taking care
of composers who are in need and in distress. However, they
should pay for this benevolence and not expect us to do it. "
Mr. Levy said the Broadcasters shouldn't be worried
about v/here they will get their music if ASCAP is dissolved.
"The Government always gives time to work these things
out", the speaker continued. "However, let's stop calling them
names. We mustn't have a chip on our shoulder. We must do
everything we can to work out an amicable arrangement. If we
finally have to fight, it must be to a knockout and don't worry
what will happen after that. "
XXXXXXXX
RAYBURN VIOLATES OWN RADIO LAW
Representative Sam Rayburn, (D. ), Texas, has become a
law breaker of hiw own law. He tangled with his own statute
wrhen, at the conclusion of a radio address over Station WJSV, in
Washington, he said, "Good night, Miss Lou. "
Miss Lou is his sister in Texas. The new communica¬
tions law, which Representative Rayburn helped write, makes it
illegal for radio orators to send wireless personal greetings.
Mr. Rayburn says he's sorry; says he forgot.
XXXXXXXX
- 5 -
9/21/34
MICROPHONIC NAB CONVENTION PICKUPS
Perhaps the first time the nation' s Chief Executive
ever took cognizance of radio advertising was when President
Roosevelt, in the course of a message addressed to the broad¬
casters at Cincinnati, said:
i!I am not unmindful of another benefit which radio
gives all the people and to all classes of business. That is a
stimulation of buying power and its assistance to commerce
generally . "
"The attitude of the Cincinnati newspapers towards the
Broadcasters' Convention bore out pretty much what I said about
the press omitting certain types of news", Senator Dill, of
Washington said. "I didn't expect them to print my speech but
I was amazed that they should ignore the presence in Cincinnati
of the broadcasters of the nation. "
There was enthusiastic praise for Phil Loucks, of the
NAB, and his hardworking assistants at the convention, Miss Bert
Seibert and E. V. "G-ene" Coagley. Through their conscientious
efforts, they unquestionably made many friends for the Association.
L. B. Wilson, of WCKY, Covington, Ky. , was quoted as
saying, "I've seen people writing shorthand, but Stanley Hubbard
of KSTP, St. Paul, is the only one I ever heard talk it."
Darrell V. Martin, Radio Editor of the Pittsburgh Post-
Gazette , said that as the result of the ballots which he had sent
out recently, he (Martin) had been elected President of the
National Radio Editors' Association; Charles Gilchrest, of the
Chicago Daily News , and Norman Siegel, Cleveland Press , Vice-
Presidents; Robert Stephan, Cleveland Plain Dealer , Secretary
and Treasurer, and Yank Taylor, of the Chicago Time s , Chairman
of the Board.
Mr. Martin said that 46 radio editors had responded to
his circular by paying $1 a year' s dues in advance.
Mayor Russell E. Wilson, of Cincinnati, said: "Powel
Crosley, Jr., is the real Radio Mayor of Cincinnati.
XXXXXXXX
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"INTERFERENCE CONFERENCE" PLANNED BY RMA
A comprehensive plan to reduce radio interference was
launched, by the Radio Manufacturers’ Association at a recent meet¬
ing in New York City of the Association1 s Board of Directors.
In the public interest as well as that of the radio industry, a
broad centralized movement to reduce electrical interference with
radio reception was recommended by the RMA Engineering Division
of which Dr, W. R. G-. Baker, of Camden, N. J. , is Chairman.
An "Interference Conference1' of leading radio engineers
will be held by the RMA next November in Rochester coincident with
the Fall meeting of the Institute of Radio Engineers and detailed
plans made for institution of many efforts to reduce radio inter¬
ference.
The RMA program on radio interference, as detailed by
Dr. Baker, is as follows, according to Bond G-eddes, Executive
Vice-President of the RMA:
"The problems of electrical interference with radio
broadcast reception have never been considered as a matter for a
concentrated program headed up and directed by one organization.
Instead there have been fragmentary bits of this important work
done by various groups in a completely unorganized manner. While
these bits were in many cases well done, the attack on the whole
proglem has never been really effective due to lack of a care¬
fully planned and adequately directed program.
"This subject is one of greatest importance to the
members of the Radio Manufacturers' Association. As makers of
broadcast receiving equipment, they stand to benefit greatly in
a financial way from improvement in interference conditions as
representing the removal of sales resistance and increase in user
satisfaction.
"The Radio Manufacturers' Association, as the prime
beneficiary of a successful program along these lines, should,
through its EngineeringDivision, take the active lead in initiat¬
ing, directing, and working on this project. This Association can,
by means of such a program, establish itself as an organization
interested in securing for the customers of its members better
radio reception conditions.
"The sources of interference are very numerous, and
the causes are scattered through many other industries. For that
reason a well organized and directed program is the only hope of
securing results. The use of the short waves for broadcasting has
tremendously broadened the scope of interference elimination work,
and any public use of ultra-short waves will still further do so.
As a specific instance, motor car interference is not a factor in
the standard broadcast range, but it is in many locations the
limiting factor on short-wave reception.
7
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"Tiie RMA Engineering Division has under formulation a
plan of action which it will head. The aid of various organiza¬
tions who can help in this work will he enlisted. It is certain
that many organizations now dabbling in the subject will welcome
a definite program. Naturally a program of this sort is not
spectacular in action, and it will be difficult to trace its
results directly as the benefits will be gradual but sure. The
publicity value of the embarkation of the manufacturers on such
a program should be of considerable value. Interesting public
news stories could follow the various phases of the organization
of the program.
"The tentative program of the Engineering Divisions calls
for an "Interference Conference" to be held in Rochester at the
time of the Fall meeting of I.R.E.
"Depending upon the results obtained at' the first con¬
ference, it may be desirable to have a second conference, possibly
six months from now. The fundamental idea back of the entire
plan is that we feel that interference work should be centralized,
and that RMA is the organization that should be effective in
centralizing all interference activities. "
X X X X X X X X
WHEELER, NEW SCC POSSIBILITY, FAVORS RADIO GOVT. OWNERSHIP
The possibility that Senator Burton Wheeler, Progressive
Democrat, of Montana, if reelected next November, may succeed
Senator Dill as Chairman of the Senate Interstate Commerce Com¬
mittee, which has jurisdiction over Communications matters,
recalled the fact that Senator Wheeler went on record at the
Senate Communications Bill hearings as being in favor of Govern¬
ment ownership of radio. This was brought out by a question from
Senator Capper when Judge Sykes was on the stand, as follows:
Senator Capper - I would like to ask Judge Sykes if this
system of unified government regulation of wire and radio communi-
cation is in use in any other country?
Mr. Sykes - Most countries, Senator, most all of the prin¬
cipal countries in the world, have one head of the department.
The government operates those things in a great many countries.
It is practically unified in all of the great nations over the
world.
Senator Wheeler - Most of the nations control them and own
them, do they not?
Mr. Sykes. - Yes, sir.
Senator Wheeler - That is what we should have in this country,
XXXXXXXXXX
- 8 -
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9/21/34
TELEGRAPH DIVISION OF FCC ISSUES NEW ORDER
In a regular meeting of the Telegraph Division of the
Federal Communications Commission, attended by Messrs. Stewart,
Chairman and Payne, September 19, 1934, the following order No. 8
was promulgated:
"The Telegraph Division, having under consideration its
prior orders, requiring the filing of copies of certain contracts,
agreements and arrangements as described in said above-mentioned
orders,
"IT IS ORDERED that eac.h telegraph carrier subject to
the Communications Act of 1934 shall, on or before October 20,
1934, file wi tii the Commission verified copies in duplicate of all
such contracts, agreements, and arrangements which have heretofore
been entered into, but have not been filed with the Commission;
"IT IS FURTHER ORDERED that each such telegraph carrier
shall on or before October 20, 1934, file with the Commission,
verified copies in duplicate, of any modifications of, or amend¬
ments to, any such contracts, agreements, and arrangements which
have heretofore been filed with the Commission, and verified copies
in duplicate of statements showing the cancellation of any such
contracts, agreements, and arrangements which have heretofore been
filed with the Commission;
"IT IS FURTHER ORDERED that each such telegraph carrier
which hereafter enters into, modifies, amends, or cancels any
such contracts, agreements, and arrangements, shall, within thirty
days thereafter, furnish the Commission with verified copies in
duplicate of all such new, modified, or amended contracts, agree¬
ments, and arrangements, and verified statements in duplicate of
such cancellations. "
XXXXXXXXXX
ABS ESTABLISHES NEW PRODUCTION DEPARTMENT
A new production department has been established in the
New York studios of the American Broadcasting System by Burt
McMurtrie, Director of Program Operations of the ABS-WMCA network.
Paul A. Greene, formerly night manager for another network, has
been appointed ABS Production Manager. Jud Houston has been named
Assistant Manager. He was previously in the production department
of a leading transcription concern. The ABS Production Division
will have charge of studios, announcers and all program production.
X X X X X X X X
8
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9/21/34
POSTAL AND I.T. & T. ANNOUNCE OPERATING EXPENSES
The Postal Telegraph and Cable Corporation announced
after the meeting of its Board of Directors yesterday (Sept. 20),
that operations for the six months ended June 30, 1934, which
include non-recurrent income of $266,363.12, resulted in a loss,
after all interest charges, of $255,296.37.
Gross earnings as per details in company's statement
for the six months ended June 30, 1934, were $14,762,962.83, as
compared with $13,516,188.69 for the corresponding period in 1933.
Operating expenses were $15,602,686.98 as compared with $12,771,
686.76 resulting in net earnings of $1,160,275.85 as compared with
$744,501.93 for the first six months of 1933. After providing
for charges of Associated Companies, general interest and interest
on Collateral Trust b% Dollar Bonds and Sterling Debenture Stock,
there was a loss of $255,296.37 for the six months ended June 30,
1934, as compared with a loss of $708,505.68 for the correspond¬
ing period in 1933. Depreciation has been provided for the six
months ended June 30, 1934, on substantially the .same basis as
was provided for the year 1933.
The International Telephone and Telegraph Corporation
announced after the meeting of its Board of Directors also yester¬
day that consolidated net income for the six months ended June 30,
1934, amounted to $1,697,932.72, as compared with a loss of
$642,310.66 for the same period of 1933.
Gross earnings as per details in company's statement for
the six months ended June 30, 1934, were $38,480,879.49 as compared
with $33,059,189.42 for the first six months of 1933. Operating
expenses were $30,539,816.96 as compared with $27,973,691.41 for
the same period of 1933, resulting in net earnings of $7,941,062.53
as compared with $5,085,498.01. Charges of Associated Companies
for interest, dividends and minority common stockholders' equity
in net income, together with general interest and interest on
International Telephone and Telegraph Corporation bonds outstand¬
ing amounted to $6,243,129.81 as compared with $5,727,808.67 for
the first six months of last year. Consolidated net income for
the six months ended June 30, 1934, was $1,697,932.72 as compared
with consolidated loss of $642,310.66 for the corresponding period
of 1933.
The consolidated net income for the first six months of
1954 was equivalent to 27 cents per share on the 6,399,002 shares
of capital stock (without par value) outstanding in the hands of
the public at June 30, 1934.
In Argentina, Brazil and Chile modifications have recent¬
ly been made in the existing exchange control regulations to permit
transactions in foreign exchange through a free market at rates
substantially below official exchange rates. The Corporation
announced that the lower free market rates have been used for
converting into U.S. dollars the income accounts for the six months
ended June 30, 1934, of Associated Companies operating in those
countries rather than the official rates previously used.
XXXXXXXXXX -10-
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BAYER BOWS TO AD ORDER
The Federal Trade Commission announced on Wednesday
that Bayer Company, Inc. , of New York City, had consented to the
issuance of a cease and desist order issued against certain
alleged unfair competitive practices in the sale of the company’s
asp irin0
"Unfair competitive practices prohibited in the order",
the commission said, "pertain to- misrepresentations concerning
the name ’aspirin’ the benefits to be derived from use of this
product and statements to the effect that it is the only genuine
aspirin on the market.
"Specifically the Bayer company is directed to cease
and desist from using in its printed advertising matter and radio
broadcasting, language stating or importing that the word
8aspirin’ is a trade-mark of the Bayer company. Provision is
made, however, that where the word ’aspirin’ has been held in
certain foreign countries to be Bayer company's own valid trade¬
mark, the Commission’s order shall not apply to advertising or
packages to be sold in those countries. 11
The Commission, the announcement said, "makes it clear
that its order is not to be construed as preventing the Bayer
company from making proper therapeutic claims or recommendations
based on reputable medical opinion or recognized medical or
pharmaceutical literature. "
X X X X X X X X
DEMONSTRATION PERIOD FOR RADIO SETS IN SOUTH AFRICA REDUCED
South African radio dealers are expected to benefit from
a recent regulation issued by the Post Office Department to the
effect that receiving sets may be demonstrated in the houses of
prospective purchasers only fourteen days without a license being
obtained by the prospect, according to a report to the Commerce
Department.
Demonstration is an important feature of the merchandis¬
ing of radio equipment in South Africa, the report points out.
However, the keen competition experienced in the trade has brought
with it certain abuses and heavier financial burdens to the com¬
peting dealers. It has not been unusual for prospective buyers
of radios to have two or three models from different dealers on
demonstration at the same time and for extended periods. Some¬
times demonstration sets have been retained by customers for as
long as three months. The dealers, already carrying large stocks
of sets needed to meet wide demonstration demands, and investing
sizable sums in stocks on order from factories thousands of miles
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9/21/34
away, have found the cost of selling mounting and the investment
in stocks abnormally high.
It is expected, the report states, that the restriction
of the demonstration period to fourteen days will greatly relieve
the dealers and bring a more rapid turnover of stocks of radio
receiving sets.
XXXXXXXXX
APPLICATIONS CHANTED BY TELEGRAPH DIVISION, FCC
September 19 - NEW ; WM. Keith Scott, NC 585-K, license,
3105 kc. , 50 watts power; City of Atlanta, Dept, of Police, Mobile,
modification of C.p. (Exp. Gen. Exp.), frequency 37100 kc. , 5
watts; D« Reginald Tibbetts, Portable-Mobile, license to cover
C.P. (Exp. Gen. Exp.), 31600, 35600, 38600, 41000 kc. , 200 watts;
Mackay Radio & Telg. Co. (Calif.), Hillsboro, Ore., KEK,
modification of license, to change description of transmitters;
WSL, Sayville, N. Y, , modification of license, to change descrip¬
tion of transmitters and delete one transmitter; KFS , Palo Alto,
Cal., modification of license to change description of transmitter;
KJA, Palo Alto, Cal. , modification of license to change equipment
and power from 20 KW to 5 KW- KJG, modification of license to
change equipment and point of communication; KJJ, Palo Alto, Cal.,
modification of license, change equipment, change power from 20 KW
to 5 KW and change points of communication; KNX , same except
change power from 20 KW to 50 KW; KNK, modification of license to
change equip, and power from 20 KW to 5 KW; KNW , modification of
lie. to change equipt. change power from 20 KW to 5 KW and change
pts. of communication; KQI, Kailua, T.H. , mod. of lie. to change
points of communication; KWA, Palo Alto, Cal., mod. of lie. to
change equipt. change power from 5 KW to 50 KW and change points
of communication; Also granted requests for KWB, KWC , KWD, KWF ;
KWI, KWJ, KWP, KWS, KWZ, KGH, Hillsboro, Ore. WJF} Sayville, N.Y. ,
KIWA, near Seattle, Wash., KQI, Kaiula, T.H. , KQE, WJD } Brentwood,
N.Y. , KJB, Palo Alto, Cal., WMZ, Sayville, N.Y. , KWQ; Palo Alto,
Cal., KWT, KOK, Clearwater, Cal., KEK Hillsboro, Ore., WSL,
Sayville, N.Y. , *
Also, W8XBT, City of Springfield, Ohio, Police Dept.,
license to cover C.P. (Exp. Gen. Exp.), 30100, 33100, 37100, 40100
kc. , 50 watts; W8XBU, Same, Porta.ble-Mobile, license same as
above except 9 watts power and location Portable-Mobile; WQEH,
RCA Communications, Inc., Boston, Mass., modification of C.P.
(fixed public pt. to pt. telg.) extending completion date to
Sept. 16, 1934; KICJ, Northland Development Co., Inc. , Goodness Bay,
Alaska, license to cover C.P. (Fixed Public pt. to pt. Telg.) 212
and 274 kc. , 100 w. ; City of Compton, Cal., Police Dept., C.P.
(police), 2490 kc. , 25 watts; KGHW , City of Centralia, Wash.,
modification of C.P. extending commencement date to Sept. 20, 1934,
and completion date to Nov. 20, 1934; WM J , City of Buffalo, N.Y. ,
Police, Dent. , license 2422 kc. , 500 and 300 watts.
XXXXXXXX
- 12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
INDEX TO ISSUE OF SEPTEMBER 25, 1954.
All Set For Big Educational Program Tussle .
Enthusiastic Broadcasters* Code Meeting Held. .
Senator Dill Again Denies Radio Affiliation. . .
Commissioner Case Discusses Telephone Over Radio. . . .
N. A. B. Would Modify Copyright Infringement Penalty..
Nominations Are Made By Radio Engineers. .
Sarnof f NBC Chairman . . .
Order No. 7~A, Telephone Division, FCC .
Industry Notes. . . .
New Zealand Radio Fans Turning To Short-Wave Sets. . .
.2
.4
.5
.6
.7
.9
10
10
11
12
No. 760
'
.
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September 25, 1934
ALL SET FOR BIO EDUCATIONAL PROGRAM TUSSLE
Representatives of commercial, educational and religious
broadcasters on both sides of the proposal as to whether or not
Congress shall "allocate a fixed percentage of radio broadcast¬
ing facilities to particular types or kinds of non-profit radio
programs or to persons identified with particular types or kinds
of non-profit activities", flocked to Washington on Monday to
attend a conference held at the office of Paul D, P, Spearman,
General Counsel of the Federal Communications Commission. This
conference was called to so arrange and schedule the appearances
of witnesses representing the various interested groups as to
be most convenient to the respective interests. The hearing
is to be held before the Broadcast Division of the Commission on
October 1st.
Naturally it would take a month of Sundays to hear all
who might wish to appear, so the suggestion was made that the
various groups appoint representatives to speak for them and
Monday's conference was for the purpose of conferring with Mr.
Spearman and to fix the allocation of time to be used by each
interested group.
Among the interested parties who have filed written
desire to be heard on October 1st and those expected to represent
them are the following:
American Federation of Government Employees, Washington,
D. Co - E. C. Babcock, Pres. ; American Civil Union, New York City;
Association of College and University Broadcasting Stations,
Champaign, Ill. , Jos. F. Wright, Past Pres. Station WILL; Chicago
Civic Broadcast Bureau, Chicago, Ill., Harris E. Randall,
Manager; City Club of Chicago, Chicago, Ill., Arnols R. Baer,
President; Council of Church Boards of Education, Gould Wickey,
Executive Secretary; International Council of Religious Educa¬
tion, Chicago, Ill. , Hugh S. Magill, General Secty; National
Advisory Council on Radio in Education, Levering Tyson, Director;
John V. L. Hogan, of New York City; National Association of
Broadcasters, Washington, D. C. , Philip G. Loucks, Managing
Director; National Committee on Education by Radio, Washington,
D. C. , Tracy F. Tyler, Secretary and Research Director.
Also, Ohio State University, Columbus, Ohio, John V.
Bricker, Atty. General of Ohio; Pacific- Western Broadcasting
Federation, Ltd., Los Angeles, Cal., Gross W. Alexander, Execu¬
tive Manager and Secretary of Board; Peoples Pulpit Association;
Paulist Fathers, New York City, John B. Harney, Superior General;
State of Michigan, Dept, of Public Safety, East Lansing, Mich.,
2
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Laurence A. Lyon, Dept. Supt. Uniform
Department of Education, "Ohio School
University of Chicago, Chicago, Ill.,
Ventura. Free Press, Ventura, Cal. , S.
N. Y.
Division; State of Ohio,
of theAir", Columbus, Ohio;
Allen Miller, Director;
Howard Evans, Carden City,
Also the following broadcasting stations: WAAB, Boston,
Mass; WBEN , Buffalo, N. Y. , A. H. Kirchhofer, Vice-President;
WEAN, Providence, R. I. ; WICC, Bridgeport, Conn. ; WNAC, Boston,
Mass.; The Yankee Network; WNBH, New Bedford, Mass., Irving
Vermilya, General Manager; WSYR, Syracuse, N. Y. , Harry C.
Wilder, President; WHA, Madison, Wis. , Glen Frank, President;
KFGQ, Boone, la. , J. C. Crawford, Manager and KWSC, Pullman,
Wash. , Frank F. Neider, Director of General Extension and Radio
Programs.
Also the various Government agencies, such as the Army
and Navy have been invited to appear if they so wished and the
Federal Trade Commission has been invited to sit in as an
observer.
These representatives of various non-profit making
organizations are to be allowed to present their case first con¬
fining themselves strictly to a statement of facts. All argu¬
ments are to be presented in briefs submitted to the Commission.
After these have all been heard, probably extending over several
days, the commercial broadcasters will appear to stand up for
their rights.
The Broadcast Division will then decide whether or not
it shall recommend to Congress that a certain percent of the
broadcasting facilities of the country shall be allotted to
these non-commercial , non-pro fit making types of institutions,
having called for a report on this question by February 1st.
While the machinery for broadcasting programs has long
been regulated by the Government, this will be the first time
programs will have been officially considered. Broadcasters
maintain that if the Commission should specify the percentage
of facilities for broadce,sting a certain type of program, it
will amount to censorship of which there is no authority under
the present law.
The commercial broadcasters are naturally aroused over
any plan to increase the "non-profit" time on the air as this
would necessarily mean the taking away of some of the facilities
of the commercifil stations. Also the broadcasters, in principal,
are opposed to Congress taking a hand in allocating radio facil¬
ities. This would make radio more of a political football than
ever and would virtually amount to Congress becoming a super-
Communications Commission.
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Attacks on commercial programs are expected to be
made and it is believed before the October 1st hearing is over
that educational and religious representatives may succeed in
putting on trial the entire American system, i.e. advertisers
paying for the programs*
It opens the door to every person and group of persons
who have from time to time opposed commercial broadcasting and
gives them an opportunity to make public record of their objec¬
tions*
Indirectly responsible for the Commission's present
investigation is Rev* John B, Harney, Superior General of the
Pau.'List Fathers, owners of Station WLWL in New York* Father
Harney, after being turned down by the Federal Radio Commission
for additional broadcasting hours for his station, went on the
warpath. He declared that WPG-, a commercial station at Atlantic
City was on the air 110-| hours a week while WLWL, because it was
obliged to share the same channel, was only allowed to broadcast
15-ijr hours a week.
Following the priest’s appearance in Washington,
thousands of telegrams and letters poured in to Congress from
all parts of the country, resulting in several bills being intro¬
duced in the Senate and House that 25 per cent of all broadcast¬
ing facilities be allocated to cultural, educational, religious,
labor and other non-profit making stations, notably one by Senator
Robert Wagner, Democrat, New York, and Senator Hatfield, Republi¬
can of West Virginia*
Later the Wagner-Hatf ield Bill was incorporated as an
amendment to the Communications Bill* It was beaten in the
Senate by a vote of 42 to 23. Subsequently, in conference a
clause was inserted in the Communications Act calling for a study
of the entire non-profit radio programs situation by the Commis¬
sion*
XXXXXXXXX
ENTHUSIASTIC BROADCASTERS' CODE MEETING HELD
There were about one hundred who stayed over for the
meeting to discuss the Broadcasters' Code which followed the
annual N.A.B. convention at Cincinnati. As a whole the Code
was heartily and enthusiastically endorsed and no objections
were raised against it*
John Shepard, III, of Station WNAC, Boston, opened the
session with a few brief remarks, after which he turned the meet¬
ing open to anybody who wished to talk. There was a general dis¬
cussion by members of the industry on various questions arising
under the Code but no real controversy.
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Eight or nine resolutions were recommended, to James W.
Baldwin of the Broadcasters' Code Authority. Among these was
one suggested by Edward Nockels, of Station WCFL, Chicago, recom¬
mending the formation of local and regional Code Authorities
throughout the country to sit and pass upon rate differences and
other violations of the Code. Another resolution recommended
was that the Code Authority investigate the question of wages
of broadcast technicians sharing time on clear channel stationsc
It was recommended in another resolution that means be
found to prevent the sale by broadcasters of time to any individ¬
ual or organization for resale unless the rates for the resale
facilities were stated on the rate card of the station.
Still another resolution recommended that the Code
Authority amend the Code so as to make it unfair to give special
discounts to broadcasting facilities sold in combination with
newspaper or other publication space.
XXXXXXXXXX
SENATOR DILL ACAIN DENIES RADIO AFFILIATION
Senator C. C. Dill, of Washington, last week, when told
persistent reports link him with an executive position with
American newscasters, thundered, "I'll join anything I damn
please", according to Editor & Publisher.
"Plainly angry, the Senator demanded to know how many
times he must deny reports of this nature, adding that he has no
present connection with any organization to broadcast news, nor
any immediate plans in that direction. Then followed his emphatic
declaration to follow his own dictates in the matter.
"The Senator made it clear that he is 'tired' of recent
newspaper publicity and spoke in a belligerent vein of libel suits
if they continue. "
XXXXXXXXXX
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COMMISSIONER CASE DISCUSSES TELEPHONE OVER RADIO
Norman S. Case, formerly Governor of Rhode Island,
and now a member of the Federal Communications Commission, Tele¬
phone Division, spoke last evening (Sept0 25) from Washington
over an NBC network.
Commissioner Case, in answer to the question put to
him by Martin Codel, who was interviewing him, as to just how
large an industry the telephone service is, replied that 11 the
telephone is one of the major industries of the Nation. In support
of this, let me cite a few statistics. The largest telephone
system - the Bell - employs more than a quarter of a million
men and women; it controls a plant investment of more than four
billion dollars; its total assets are nearly five billion dollars;
it has three-quarters of a million stockholders; and they say one
person in every hundred in the United States either works for,
or owns, securities of this system."
Commissioner Case replied in the affirmative when
asked if that was the company Congress expected the Commission to
regulate when it enacted the Communications Law. But he added
"to the extent that its operations are in interstate and inter¬
national commerce. But there is more to the telephone industry
than the Bell System.
"The duties of the Commission as to interstate and
intrastate service represent only a very small part of its work. ***
Congress has directed the Commission investigate any conflicts to
service between telephone and telegraph carriers, the existence
of contracts or interlocking directorates creating monopoly or
other conditions detrimental to public service at reasonable
rates, and the Commission is directed to recommend to Congress
such additional legislation on these or other subjects relating
to carriers by wire or radio. "
"We have jurisdiction over the American end of the
international and ship radiotelephone service", Commissioner Case
went on to say, "and all other uses of radio for telephone com¬
munication, such as intercity, coastal harbor and aviation tele¬
phony.
"There is no other agency except the Federal Government
which can regulate this interstate business, and, as it is a
natural monopoly, the citizens of our country have a right to
expect from their Government a proper supervision of these ser¬
vices to assure efficient service at reasonable rates. "
XXXXXXXXXX
6
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N.A.B. WOULD MODIFY COPYRIGHT INFRINGEMENT PENALTY
Congress was petitioned by the National Association of
Broadcasters which, met at Cincinnati to amend the existing copy¬
right law by omitting the language which fixes the minimum
innocent infringement penalty for the public performance of
musical compositions at $250 and attorney’s fees, leaving the
Court free, in each instance, to fix such penalty as in its
discretion the Court deemed proper.
The Association endorsed the government anti-trust
suit against the American Society of Composers,. It sanctioned
organizing a music pool, possibly by a reorganization of the
Radio Program Foundation to obtain for broadcasting stations
air rights to music not otherwise available.
Because the custom of holding of the N.A.3„ convention
in the Fall months during the busiest season of the year for
the broadcasters works a hardship on its members to get away , it
was decided hereafter to hold the convention in June or July.
The city in which the convention is to be held next year has not
yet been decided upon but will be taken up at the October meet¬
ing of the Board of Directors.,
The Association backed the Federal Trade Commission’s
radio advertising cleanup. A committee to be appointed will study
what is pertinent information for the advertising agencies and
the advertisers who are buyers of radio advertising, and to invite
discussions with representatives of the American Association of
Advertising Agencies and the Association of National Advertisers,
with a view to setting up a bureau for the broadcasting industry.
Where Variety , the theatrical magazine was severely
criticized at the Convention by Isap.c D. Levy, of Station WCAU,
of Philadelphia, its competitor, Billboard, which is published
in Cincinnati, received the official thanks of the Broadcasters'
Association "for its fine cooperative wrork"c Billboard mimeo¬
graphed all speeches and reports of the Convention for the
Association which had neither the funds nor the facilities to do
this wrork.
The Association adopted the following recommendations
of the Committee:
1. That units of sales be standardized as follows:
one hour, one-half hour, quarter hour, five minutes, one minute
transcriptions, one hundred words, half-minute transcriptions,
fifty words or less.
2. That all quantity discounts be given within a period
of one year, with discounts retroactive to the first broadcast
within that year, discounts to apply within the same time classi¬
fications.
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9/25/34
3. That operating companies or holding companies
operating more than one subsidiary be permitted to buy under a
group plan allowing discounts for each of the separate companies
under a blanket order to apply even if more than one agency is
involved in placing time.
4. That all stations put on their rate cards , in addi¬
tion to the regular standard units of time, under a separate head¬
ing called "special service features'1, such features as time
signals, weather reports, sports events, participation programs
and any other service features, with an adequate description of
what the individual station allows.
5. That no station quote quantity discounts on con¬
secutive times other than 13, 26, 52, 100, 150 and 300.
Another resolution was to the effect that the N.A.B.
establish and maintain an advertising agency recognition bureau
at the Washington office of the Association: and that such
machinery as may be necessary be set up by the Managing Director
with such funds as may be deemed necessary and approved by the
Board of Directors as a part of the regular annual budget; that,
in general, agency recognition be extended to only those agencies
which can satisfy the bureau as to credit responsibility, char¬
acter or operation and radio service facilities; that said bureau
be given full powrer to study applications of agencies for such
recognition and to determine whether or not such recognition
should be extended, subject to approval of the Board of Directors;
and that the bureau furnish a list of those agencies which are
extended recognition, together with all supplements thereof, with
the strong recommendation of the Association that its members pay
agency commission only to those advertising agencies extended
recognition by the said bureau.
The Association urged the fullest possible cooperation
in merchandising that is consistent with good business practices;
but since the merchandizing requirements of advertisers are wholly
lacking in uniformity, the Association recommends, in fairness to
all advertisers, that the cooperation of the stations be limited
to such activities as do not entail direct expense, and that where
any direct expense is involved such costs should be borne by the
advertiser.
Since it is the belief of the Commercial Committee that
special rates filed with the Code Authority may be used as a means
of making concessions contrary to the intent of stabilized rates
provisions of the Code, the National Association of Broadcasters
resolved to petition the Code Authority to take steps to amend
and clarify or to repeal its regulations permitting this practice.
The Association recommended that the work of the cost
accounting committee be recommended and that a copy of the stand¬
ard accounting system be sene to members if possible by Dec. 1st.
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Reaffirming a resolution passed last year urging that
the existing regulations be altered requiring that electrically
transcribed programs made especially for broadcasting be so
announced, the Association directed its officers to bring the
resolution to the attention of the Federal Communications Commis¬
sion.
Finally the Association ordered By-Law No. 1 repealed
and substituted therefor the following:
Effective October 1, 1934, quarterly dues shall be pay¬
able each January 1, April 1, July 1 and October 1, on the follow¬
ing basis.
(a) Each member operating a station authorized to oper¬
ate 40 hours or less per week shall pay a sum equal to one- third
of the highest rate published by such member for one-quarter hour
of broadcasting time.
(b) Each member operating a station authorized to oper¬
ate 41 to 60 hours per week shall pay a sum equa.l to one-half of
the highest ra,te published by such member for one quarter hour of
broadcast time.
(c) Each member operating a station authorized to
operate 61 to 80 hours per week shall pay a sum equal to two-
thirds of the highest rate published by such member for one
quarter hour of broadcast time.
(d) Each member operating a station authorized to
operate 81 hours or more per week shall pay a sum equal to the
highest rate published by such member for one-quarter hour of
broadcast time.
X X X X X X X
NOMINATIONS ARE MADE BY RADIO ENGINEERS
Stuart Ballantine, President of the Boonton Research
Corp. , Boonton, N. J. , and William Wilson, Assistant Director of
Research of the Bell Telephone Laboratories, New York City, have
been nominated for the 1935 presidency of the Institute of Radio
Engineers, leading fraternity of American radio technicians.
Ballots are noxir being submitted by mail to be opened on or about
November 1, according to an announcement by C. M. Jansky, Jr., of
Washington, 1934 President.
Nominated for Directors for 1935-1937 terms are the
following, three of whom must be chosen; L.C.F. Horle, New York
consulting engineer; E. I. Nelson, radio development engineer of
the Bell Laboratories; Haraden Pratt, Chief Engineer of Mackey
Radio & Telegraph Co. ; B. E, Shackleford, Manager of the Patent
Department, R. C.A. Radiotron Co,, He„rrison, N. J. ; H. A. Wheeler,
Engineer of the Hazeltine Corp,, Bayside, N.Y. , and Laurens E.
Wliittemore, Special Radio Representative of the American Tele¬
phone & Telegraph Co.
X X X X X X X X
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SARNOFF NBC CHAIRMAN
David Sarnoff, President of the Radio Corporation of
America, was elected Chairman of the Board of the National Broad¬
casting Co. at a, meeting of the Board of Directors at their
meeting last week. M. H. Aylesworth was reelected President and
Richard Patterson, Jr. , Executive Vice President,
Other officers reelected were Mark Woods, Assistant
Executive Vice-President; John F. Royal, Vice-President in charge
of programs; Frank Mason, Vice-President in charge of public
relations; George Engles, Vice-President in charge of Artists'
Bureau; Edgar Kobak, Vice-President of Sales; A. L. Ashby,
General Attorney; R. C. Witmer, Vice-President of Eastern Sales;
D. E. Gilman, Vice-President in Charge of Pacific Coast Division
of the NBC; F. M. Russell, Vice-President, Washington office;
Niles Trammell, Vice-President, Chicago headquarters.
H. K. Norton was reelected Treasurer; Lewis MacConnach,
Secretary, and R. J. Teichner, Assistant Treasurer.
David Rosenblum, formerly associated with Trade-Ways,
Inc. , was elected to the NBC as a new Vice-President0
David Sarnoff, as Chairman of the Board, fills the
vacancy created by the death of H. P. Davis, Vice-President of
the Westinghouse Electric and Manufacturing Company.
XXXXXXXX
ORDER NO. 7-A, TELEPHONE DIVISION, FCC
In a special meeting of the Telephone Division of the
Federal Communications Commission, Sept. 24, 1934:
The Telephone Division having under consideration its
Order No. 7, adopted August 16, 1934, and a petition in the form
of a letter from the National Association of Railroad and Util¬
ities Commissioners dated September 14, 1934, requesting post¬
ponement from October 1, 1934, to January 1, 1935, of the date for
the filing of exceptions, objections, or suggested amendments to
the report in Interstate Commerce Commission Docket No. 25705;
IT IS ORDERED, That an extension of time be granted to
November 1, 1934, for the filing of such exceptions, objections
or suggested amendments;
IT IS FURTHER ORDERED, That Order No. 7 be set down for
hearing and oral argument by the parties on November 16, 1934,
before the Telephone Division in its hearing room at Washington, D. C.
XXXXXXXX
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9/25/34
: INDUSTRY NOTES
Station WEEI, NBC Boston affiliate, will celebrate its
tenth birthday on Saturday, Sept. 29th. The special anniversary
broadcast will be heard over an NBC-WEAF network from 7 to 8 P.M.
E.S.T. The station is owned and operated by the Edison Electric
Illuminating Co. of Boston.
Columbia Broadcasting System, Inc. - For 1933: Net
income after expenses and other charges, $923,794, equal to $8.21
a share on 112,444 shares of combined Class A and Class B stock.
G-eorge H. Kill, Examiner, has recommended that the
Federal Communications Commission affirm its grant of the applica¬
tion of the Red River Broadcasting Co. , Inc. , for the removal of
Station KG-FX from Moorhead to Duluth, Minn.
The colorful ceremonies attending the launching of the
largest ship in the world, the Cunard liner Victoria, during which
American listeners will hear the voices of King George and Queen
Mary, will be presented over an NBC-WJZ network in an interna¬
tional broadcast from Glasgow on Wednesday, Sept. 26th.
Russia now has nearly 90 radio broadcasting stations.
More than 500 musicians, members of the Emergency Council,
Professional Musicians of Greater New York, attended a meeting
recently in New York. Resolutions were proposed at the meeting
demanding local autonomy for Local 802 of the American Federation
of Musicians and that a petition be sent to President Roosevelt
requesting the elimination of synchronized music from all theatres.
Arthur Pryor, Jr. , head of the Radio Department, and
James W. Wright, manager of the Chicago office have been elected
as Vice-Presidents of Batten, Barton, Durstine & Osborne.
X X X X X X X X
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9/25/34
NEW ZEALAND RADIO FANS TURNING TO SHORT-WAVE SETS
Short-wa/ve radio sets have recently become extremely
popular in New Zealand, according to a report from Vice Consul
Walter W. Hoffman of Wellington.
The sudden enthusiasm of the public for this type of
receiver, the report states, caught the local trade without
adequate supplies. However, considering the stocks of these sets
available, a very satisfactory volume of business was done,
radio sales in the second quarter amounting to almost a small boom.
Total imports of radio sets into New Zealand in the
quarter ended in June were valued at L89,316 compared with
L73,422 in the corresponding period of 1933, an increase of
approximately 20 per cent.
A striking indication of the growing popularity of radio
in New Zealand is shown in the increased number of registration
licenses which have been issued during the current year. On
April 1, the beginning of the radio licensing year, 109,000
licenses had been issued, which figure represented 93 per cent of
those previously in force. By the end of May this number had
grown to 120,893, an advance of 3,109 over the number which
expired on March 31.
Very little progress has been made in the introduction
of automobile radio sets into New Zealand, the report states.
This situation, it is pointed out, results from the fact that no
attempt has been ma.de to promote the sale of such sets. Moreover,
there is an almost total lack of facilities for servicing and
installing automobile sets at the present time.
Effective September 14, the New Zealand general tariff
rates on radio sets, applicable to imports from the United States,
were increased from 35 percent to 45 percent a,d valorem when
mounted in cabinets, and from 25 percent to 35 percent when not
mounted in cabinets, according to a cablegram received in the
Department of Commerce from Vice Consul Walter W. Hoffman, Well¬
ington. The British preferential tariff rates remained unchanged
respectively at 10 percent ad valorem and free of duty, subject
to the provision that on and after June 1, 1935, radio sets
mounted or unmounted would be admitted under the British prefer¬
ential tariff free of duty.
The New Zealand radio duties have been subject to several
changes within the last few months.
X X X X X X X X
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2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
c i I 1334 c
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INDEX TO ISSUE OF SEPTEMBER 28, 1934.
Hitler Makes G-ermany Radio Conscious. . . . . 2
Code Authority Issues Bulletin Re Broadcasting World Series . 4
Chile To Have New Powerful Radio Station. . . . . . . 5
To Debate Governmental Radio Control . . . . . 6
Oppose Dill Radio Plan, Schall Asks Roosevelt. . . 7
Hearing Pursuant To Broadcast Division Order No. 1 . 8
Industry Notes . . . 11
Applications G-ranted By Communications Commission . 12
No. 761
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HITLER MAKES GERMANY RADIO CONSCIOUS
Disappointed that only 1,260,000 more Germans own radio
receiving sets than they did two years ago, Chancellor Adolf
Hitler is exercising his great power to make Germany radio con¬
scious. Commenting upon the fact that as yet but 5,360,000
Germans out of a total population of more than 62,000,000 own
radio sets, Dr, Paul Joseph Goebbels, the Propaganda Minister,
declares that the influence of the radio will increase greatly.
"Some day the radio will be the spiritual daily bread of the whole
German nation”, he said.
While on the one hand, Chancellor Hitler is suppressing
and censoring the newspapers, on the other hand he is doing every¬
thing to increase radio listeners. The Government has gone so far
as to cancel every postage stamp with the following slogan: "Jeder
Volksgenosse Rundfunkhoehrer" , which means, "Every Citizen a Radio
Listener,. 11 Thus the Germans are inspired to think not only must
they have a radio but that it is the patriotic thing to do.
Imagine what a radio salesman could do with such a selling argu¬
ment behind him as that.
Continually lessening the influence of the newspapers,
Hitler turns more and more to the radio.
"The Germans proved themselves poor propagandists during
the War", a student of the affairs of that country observed, "but
today, abandoning the newspapers, the ablest radio propaganda in
the world is being put out by Hitler. "
In order to increase the number of radio listeners in
Germany, they have exempted the unemployed from paying the monthly
two mark radio fee. With the newspapers muzzled, when Hitler has
anything important to say, he says it over the radio. His latest
effort is an intensive series of broadcasts across the German
frontier to the Germans of the Saar. He is staking practically
all his chances on winning back the Saar on radio.
Loud-speakers are installed in public squares, parks and
elsewhere in Germany. Whenever Hitler speaks, his address is
heard all over the Reich by crowds of unbelievable size. When
Chancellor Hitler made his campaign election speech in Hamburg,
for instance, crowds gathered in other cities to hear him almost
as large as in the city where he actually spoke.
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9/28/34
Maybe one of the reasons which has caused Hitler to turn
to the radio is revealed in an impression of him gained by William
Wigglesworth, of Harvard University, who was one of the thirty-six
American students who went abroad last year to study in private
homes in Germany, This student happened to be in Coblent z the
day Hitler was there, and was very close to him.
''Later we heard Hitler speak1', Wigglesworth said. "He
was all right but I think he sounds more impressive over the
radio, "
Showing that considerable discretion is used as to what
goes out over the air was a recent order issued to Germany's radio
stations to cut down on the number of political speeches, those
in charge apparently feeling that the people have had enough
politics for the time being.
One of the most ingenious things Hitler has done is the
manner in which he has made use of electrical transcriptions, or
broadcasting by records. This has been especially adapted for
reaching countries in which there is a wide difference in the
time. For instance, the evening period in Germany, the best time
for broadcasting there, is morning in the United States. So on
important broadcasts, Hitler has records of them made which are
rebroadcast to this country by directional antenna short-wave
and reach here at the right time for our evening listeners.
Such an occasion was the repetition of the entire
funeral service of von Hindenburg, including the salute with
cannon, rebroadcast to the United States that evening, at the end
of which was a transcript of von Hindenburg1 s last speech. Thus
Germany reaches out to other countries. Records are made of
speeches broadcast in Germany and then are repeatedly rebroadcast
in that country so everybody will be sure to hear them.
John S. Young, National Broadcasting Company announcer,
who has just returned from a trip abroad, said that German broad¬
casting has changed from an aggregation of privately owned, com¬
panies into a publicly owned system which takes its instructions
from the Minister of Propaganda.
That Chancellor Hitler has an eye to the future is the
effort he is making to have the German Post Office introduce and
develop television in that country. Uniting television with
telephony experiments are being made between Berlin and other
cities. It seems to be the idea to have a chain of television
and sound stations coordinated in the different cities.
It has been noticed that Senator Huey Long has been
handicapping the press and using the radio in Louisiana very much
the same as Hitler. The " Kingfish" barred newspaper representa¬
tives from the sessions of the Louisiana legislature where an
investigation was being conducted to determine the character of
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the city government in New Orleans. By broadcasting over Station
WDSU, New Orleans, his questions and the replies of witnesses,
Senator Long, as someone put it, ''managed to get publicity and
yet retained an effective control over what part of the proceed¬
ings was to reach the public. " There are those who wonder if
maybe Huey didn't get his idea for using the radio from Hitler.
XXXXXXXXXX
CODE AUTHORITY ISSUES BULLETIN RE BROADCASTING WORLD SERIES
The Code Authority for the Radio Broadcasting Industry,
of which James W. Baldwin is Executive Officer, has just issued
the following Bulletin No. 12 to all broadcasting stations and
network companies:
World Series Baseball Games
"We are informed that the Officials of the Major Baseball
Leagues have elected to commercialize the broadcasting of the 1934
World Series games; and that they have sold the exclusive rights
to broadcast the 1934 World Series games to the Ford Motor Company.
In consequence of this, the broadcasting of any of the 1934 World
Series games including either the name of the Sponsor (Ford Motor
Company) or any description of the sponsor's products must be on
a commercial basis consistent with the provisions contained in
Article VII, Section 1, paragraphs (a) and (b) of the Code of Fair
Competition for the Radio Broadcasting Industry.
Short Rate - Contracts Must Be in Agreement With Rate Card
"The Code Authority has received inquiries from stations
concerning the inclusion of the following clause in certain of
their contracts:
"'The advertiser reserves the right to cancel this program
without short rate if governmental regulations or legislation
require such a cancellation. 1
"The question arises whether such a condition is consistent with
the provisions contained in Article VII, Section 1, paragraph (a)
of the Code.
"That Section provides in part as follows:
"'Each broadcaster and network shall forthwith publish and
file with the Code Authority a schedule of all its rates regu¬
larly and currently charged to advertisers for the use of
broadcasting time, together with all discounts, rebates, refunds,
and commissions which shall be allowed to the users of such time
or to their recognized agents, such schedule to be known as the
Rate Card. * * * 1
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"Regular procedure for the modification of a rate card is also
provided for in Article VII, Section 1, paragraph (a) of the Code,
which provides in part as follows;
"•No Rate Card or rate charged thereunder shall be modified
until fifteen days after the filing with the Code Authority of
the Rate Card with the proposed modifications. *
"The inclusion of any such condition in a contract, therefore,
cannot be accepted as a modification of a Rate Card,,
"The Code Authority, therefore, rules that the inclusion of
any such condition in a contract, if it is inconsistent with the
stations' or networks' rate cards, is in violation of the Code."
XXXXXXXXXX
CHILE TO HAVE NEW POWERFUL RADIO STATION
What is said to be one of the most powerful broadcasting
stations in South America will be erected in the vicinity of
Valparaiso, Chile, according to advices from Consul Frank A.
Henry.
Present Chilean stations, it is pointed out, are of
comparatively low power and can not adequately serve the extreme
northern and southern parts of the country. The new station
will, it is stated, be ree.dily heard throughout the entire length
of the Republic.
This station is expected to be operating in October.
The power at the antenna will be 10 kilowatts with a wave length
of 760 kilocycles, or 400 meters. The latest technical advances
will be embodied in the installation of plant and studios. There
will be four of the latter, two in Valparaiso and two in Santiago
and programs will continue from eight in the morning until twelve
midnight. Greatly improved programs are promised with many new
features.
This new broadcasting station, Consul Henry points out,
will probably result in increasing sales of radio receiving sets
in Chile, especially in those remote parts of the country not now
reached by existing stations.
XXXXXXXXX
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TO DEBATE GOVERNMENTAL RADIO CONTROL
Whether the Government shall own, operate and control
radio broadcasting in the United States will be debated at the
Fourth Annual Assembly of the National Advisory Council on Radio
in Education in Chicago October 8th, The general subject of
the Assembly will be "The Importance of Redio Broadcasting in a
Changing Social Order. "
"Broadcasting in America, is at a crossroads", declared
Levering Tyson, Secretary and Director of the Council this week
in telling plans for the meeting. "By February 1, 1933, the new
Federal Communications Commission must report on the proposal
that Congress by statute allocate fixed percentages of radio
broadcasting to particular hinds of non-profit radio programs.
Educational broadcasts fall under this classification.
"Many proposals for changes have been advanced and
will be discussed at the coming assembly. In order to get revenue
to operate during the depression years, the broadcasting stations
have literally flogged the ears of the American public with sell¬
ing talk for a variety of cathartic, cosmetic and pharmaceutical
products. There has been a violent surge of criticism against
types of so-called 'children's programs1. The broadcaster is
belabored on one side by economic forces which no one could con¬
trol; on another by an outraged public opinion against 'disgust¬
ing' advertising; on still another by advertising agency sta¬
tistics to prove that certain types of programs bring 'results.'
And he is continually faced with the cold, hard fact that the
show must go on - that the transmitter must operate every hour
for which he is licensed. The effort to keep out of the red seems
to have sidetracked the fundamental concept that broadcasting is
a public service. 11
The program for the 1934 assembly is as follows:
Monday Morning:
Greetings from London by short wave - Robert A. Millikan,
President of the Council
Chairman: Livingston Farrand - President, Cornell University
Address: "Radio and Public Policy" - Robert M. Hutchins,
President, University of Chicago
Address: "The Changing Social Scene in 1934" - William F.
Ogburn, Professor of Sociology, University Chicago
Address: "Implications of the Changing Social Order in
American Cultural Activities" - Frederick P. Keppel,
President, The Carnegie Corporation of New York
Monday Afternoon:
Chairman: Lotus D. Coffman, President, The University of Minn,
Address: "What Radio Broadcasting Has Accomplished as a
Cultural Instrument1' - Robert M. Sproul, President,
The University of California
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Monday Afternoon (continued)
Address - "Educational Capabilities of Technical. Audio-
Visual Methods :i - Alfred. N. Goldsmith, Consulting
Engineer; Chairman, The Council's Engineering
Committee
Address: (Subject to be announced) - Grace Abbott, Professor,
Public Welfare Administration, University of Chicago
Monday Evening:
Public Meeting, Auditorium, Hall of Science, Century of
Progress
Chairman: Rufus C, Dawes, President, A. Century of Progress
Address: John H. Finley, Associate Editor, New York Times.
Address: "Radio Broadcasting and Public Affairs"
The Hon. Harold L. Ickes, Secretary of the Interior
(To be broadcast NBC-WJZ network, 10 P.M.EST)
Tuesday Morning:
Chairman; Harry W. Chase, Chancellor, New York University
Subject: "Shall the Government Own, Operate and Control
Radio Broadcasting in the United States?
Speakers: For Government control - Bruce Bliven, Editor,
The New Republic
For private control - Col. Frank Knox, Publisher,
The Chicago Daily News
Tuesday Afternoon:
Panel Discussion
Subject: "What Should Be Done to Improve Broadcasting in
the United States?'1
Chairman: Lyman Bryson, Teachers College, Columbia University.
Participants to be announced
Tuesday Evening :
President: Walter Dill Scott, President, Northwestern Univer-
Subject: "Radio in the Future" sity
Speakers: Walter Damrosch
John Erskine
XXXXXXXXX
OPPOSE DILL RADIO PLAN, SCHALL ASKS ROOSEVELT
Senator Schall (Rep.), Minnesota, sent a telegram on
Tuesday to President Roosevelt asking that the Chief Executive
"immediately denouce" the proposal by Senator Dill (D.) of
Washington, that the broadcasting companies set up their own news
gathering agencies.
XXXXXXXX
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HEARING PURSUANT TO BROADCAST DIVISION ORDER NOc
Tlie following schedule was developed by unanimous agree¬
ment of those representing organizations and groups interested in
the subject matter covered by Broadcast Division Order No, 1. A
few organizations or groups were not personally represented at the
conference held in the offices of the Commission on Monday, Sept»
24. All of those who had filed appearances and who had requested
time to testify at the hearing were given the periods of time
desired, by them. All organizations and groups represented in per¬
son at the conference on September 24 were likewise allotted the
time that each such group or organization desired for the purpose
of presenting testimony.
It was unanimously agreed at the conference that the
governmental departments and agencies wrould be allotted time in
addition to that shown on the following schedule so as to afford
opportunity for these agencies to present facts and data for the
benefit of the Commission,
It was also the unanimous agreement of all those attend¬
ing the conference and representing all interested groups that the
National Association of Broadcasters would be allowed the same
amount of time for presenting the position of the broadcasting
industry as has been allotted to the other groups as shown by
the following schedule of hearings.
Order No, 1 above referred to was issued July 31, 1934
and is repeated here in its original form:
"Pursuant to the provisions of Section 307(c) of the
Communications Act of 1934, as follows:
" 1 The Commission shall study the proposal that Congress
by statute allocate fixed percentages of radio broadcasting
facilities to particular types or kinds of non-profit radio
programs or to persons identified with particular types or
kinds of non-profit activities, and shall report to Congress,
not later than February 1, 1935, its recommendations together
with the reasons for the same. '
"IT IS ORDERED, that any person or licensee (of a radio
broadcast station) desiring to submit information to the Commission
concerning any matter referred to in said section may do so by
appearing in person or by attorney at a hearing to be held at the
offices of the Federal Communications Commission beginning at 10 A. M,
on October 1, 1934, and continuing from day to day until completed,
Written notice of intention to appear at said hearing should be
furnished the Commission not later than September 20, 1934,
"IT IS FURTHER ORDERED, that the Secretary cause copies
of this order to be sent all licensees of radio broadcast stations
and any other parties known to be interested in said matters.
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Monday, Oct. _ 1
10 A. M, -1 F.M. and 2 PJa to 4 P.M. :
National Committee on Education by Radio and Kindred
Organizations Including:
1. National Association of Education Broadcasters
(successor to Association of College and
University Broadcast Stations)
2. Jesuit Educational Association
3. National Catholic Educational Association
4. National Association of State Universities
5. National University Extension Association
6„ American Council on Education
7, National Educational Association
8, National Council of State Superintendents of
Public Instruction
9. Association of Land Grant Colleges and Universities
10. National Committee on Education by Radio
Note: Time allocated to the above-mentioned educational organiza¬
tions will be distributed and the division thereof deter¬
mined by Mr. Tracy F. Tyler.
Tuesday, Oct. 2 - 2 P.M. to 4 P.M.
National Committee on Education by Radio and Kindred
Organizations Including:
1. National Association of Educational Broadcasters
( successor to Association of College and University
Broadcast Stations)
2. Jesuit Educational Association
3. National Catholic Educational Association
4. National Association of State Universities
5. National University Extension Association
6. American Council on Education
7. National Educational Association
8e National Council of State Superintendents of
Public Instruction
9, Association of Land Grant Colleges and Universities
10. National Committee on Education by Radio
Wednesday, Oct. 3
10 A.M.-I P.M. - Same as for Monday and Tuesday Oct. 1 and 2
2 P.M. -3 P.M. - International Council of Religious Education
(c/o Hugh S. Magill)
3 P . M. -4 P. M. - Council of Church Boards of Education (c/o Gould
Wickey )
Thursday, Oct. 4
10 A. M. -12:30 P.
12:30 P.M.-l
P.M,
2 P.M.- 4:30
P.M.
Peoples Pulpit Association, c/o Anton Koerber
University of Chicago c/o Allen Miller
Chicago Civic Broadcast Bureau, c/o Harris
Randall and A. R. Baar
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9/28/34
Friday, Oct. 5
10 A, M". -11: 50 A. M. - Pacific Western Broadcasting Federation
(c/o Gross Alexander)
11; 30 A. M. -12: 50 A.M. - Association of State Police Executives
(c/o Capt. Laurence A, Lyon)
2 P.Mo - 3 P. If - Ohio State University (Station WOSU)
(Represented by Attorney General Bricker)
3 P,MC, - 4 P, M. - American Civil Liberties Union
(c/o Harry F Ward)
Monday, Oct, _ 8
10 Ac Me - 1 P.M.) - Catholic Educational, Religious and Frater-
2 P,Mo - 3 P.M.) na] Group (c/o J, P. McArdle)
5 P.M. -3: 15 P.Mo - Ventura Free Press (c/o S» Howard Evans)
3:15 P.M. -3: 45 P,M.-Babson Statistical Organization
(c/o T. Go Joslin)
3:45 P.M. -4; 30 P.M. -National Institution of Public Affairs
Wednesday, Oct. 10
10 A. Mn - 1 P.M. ) - National Advisory Council on Radio in
2 P.M. - 4 P.M. ) Education (c/o Dr. Levering Tyson)
Thursday, Oct. 11 - 3 0 A.M„ to 1 P,M„ and 2 P.M, to 4 P.M. )
Friday, Oct. 12 - ,? " * 2 * * * * * * * 10 11 )
Monday, Oct, 15 - ft " n )
Tuesday, Oct, 16 - 2 P. M. - 4 P.M. )
Wednesday, Oct, 17- 10 A M.-4'p.M, ' and 2 P.M. -4 P.M. )
Thursday, Oct. 18 " " )
National Association of Broadcasters (c/o Philip G. Loucks)
Friday, 0cto 19
10 A.M. -I P„M0 - National Recovery Administration - 30 minutes
(c/o W. B0 Dolph)
Children's Bureau, Labor Department - 30 minutes
(c/o Dr. Ella Oppenheimer)
Post Office Department - 1 hour
(c/o Owen A. Keen)
Agriculture Department - 1 hour
(c/o Morse Salisbury)
2 P.M0 -4 P.M. - Other Government Departments and Agencies
XXX XXX XXX
Theories are advanced that the excessive rainfall is due
to atmospheric disturbances by radio. It may be worth an experi¬
ment to ascertain whether if the flow of speech and song will dry
up the climate will do the same.
- Contributed
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9/28/34
INDUSTRY NOTES:::
Fifteen thousand dealers and distributors of the Philco
Radio & Television Corp, will join in a nationwide ,;radio meeting"
Tuesday, Oct. 2, to hear a broadcast designed especially for
them to be broadcast over the WABC- Columbia network from 2:45-
3:00 P.M.EST.
A pamphlet entitled "Radio Communications Between
Amateur Stations on Behalf of Third Parties", dealing with an
important restriction upon the international exchange of messages
by an amateur radio station on behalf of third party is for sale
by the Superintendent of Documents, Washington, D. C. at 5/ a copy.
Father Phillippe Soccorsi, noted Roman professor of
science, has been appointed by the Pope as director of the
Vatican short wave radio station, succeeding the late Father
Gianfrancheschi, who installed the station along with Marconi.
Dean Carl W. Ackerman, of the School of Journalism, in
his report to Dr. Nicholas Murray Butler, Columbia . University ,
listed among what he regarded as the ten outstanding developments
in journalism during the last year the following:
"The inauguration of press-radio news in the United
States by The Associated Press, the United Press and International
and Universal News services in cooperation with the National and
Columbia broadcasting systems. "
Examiner Ralph L. Walker, of the Federal Communications
Commission has recommended that the application of Walker & Down¬
ing Radio Corp. (Station WWSW) for C. P. be denied and that the
application of A. M. Rose, Inc. (Station WMMN) for renewal of
license be granted.
A recently developed type of broadcast is the "partly-
recorded" program featuring "in person" dialogue and electrically
transcribed music. So satisfactory have they proved that many
have been launched over WOR during the past month.
XXXXXXXX
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APPLICATIONS GRANTED BY COMMUNICATIONS COMMISSION
Broadcast Division - UP AG. National Radio & Broadcasting
Corp., Amarillo, Texas, Modification of C.P. to make changes in
equipment and extend commencement date to 30 days after this date
and completion date to 90 days after* this date (Sept, 25); KGAR,
Tucson Motor Service Co., Tucson, Ariz. , license to cover C.P„,
1370 kc0 , 100 w„ ; 250 w0 unlimited; WMAZ , Southeastern Broadcasting
Co., Inc. , Macon, Ga. , modification of C.P, approving transmitter
site at Log Cabin Ave. , Macon, change in proposed equipment and
extending commencement date to 30 days after this date and comple¬
tion date to 6 -months after this date (Sept. 25); VJORC , Alfred Fc
Kleindienst, Worcester, Mass. , license to cover special experimental
authorization; station licensed on 1200 kc. , 100 w. , unlimited
time, station has spec. exp. authority to operate on 1280 kc. , 500
w. , unlimited time and changed equipment; KMBC , Midland Broadcast¬
ing Co., Kansas City, Mo., license to cover C„P. , 950 kc. , 1 KW
night, 2-g- KW day, unlimited; KWKH , International Broadcasting Corp. ,
Shreveport, La. , modification of spec, temp. Exp. auth. for approval
of proposed directional antenna system.
Also, WTAR, WTAR Radio Corp., Norfolk, Va. , C.P„ to make
changes in equipment: WJMS , WJMS, Inc., (Portable) Ironwood, Mich.,
modification of C.P. to reduce power from 75 to 55 watts, change
commencement date to Aug, 10 and completion date to Oct. 10; all
other terms of existing C.P. to remain unchanged; KIKI , Liner’s
Broadcasting Station, Inc, , Portable, near Monroe, La. , license to
cover C.P. 2150 kc, 75 watts; New, Onondaga Radio Broadcasting
Corp., Portable-Mobile ( Syracuse")* (2 applications), C.P. (Exp0
Gen. Exp.), 31100, 34600, 37600, 40600" kc. , 5 watts.; W8XCF,
Adirondack Broadcasting Co., Inc., Portable-Mobile (Hudson Falls),
license to cover C.P. 31100, 34600, 37600, 40600 kc. , 5 watts;
W3XAD , RCA Victor Co., Inc., Camden, N. J. , modification of C.P. to
increase power from 500 watts and 2 KW to 30 KW, and extend com¬
pletion date to March 15. 1935.
Telegraph Division: City of Chicago, Dept, of Public
Works, Chicago, Ill., C.P. '(Gen. Exp. T, 31600 and 4100 kc. , 15
watts; YfeXU, City of Raleigh, N. C. Gen. Exp. license, 30100,
33100, 37100, 40100 kc. , 25 watts; W2XGK, Town of Harrison, N.Y.,
license (Gen. Exp.) 30100, 33100, 37.100, 40100, 86000-400000,
401000 kc. , 50 watts; W2XGL, W2XGM, W 2 X UN , W2X GO , same as above
except 9 watts; WAS WAF WAM WAU, W AW , Tropical Radio Telg. Co. ,
Hialeah, Fla. , modification of license to make change in trans¬
mitters and to add Belize, British Honduras to points of communica¬
tion and delete San Salvador; WAV, Same Co. , same as above cexept
add points of communication: Belize, British Honduras, only; KGED,
City of San Diego, Cal., Police Dept., license to cover C.P. 2490
kc. , 1 transmitter 500 watts, 1 transmitter 50 watts; KNFH, City of
Garden City, Kans. , license to cover C.P. 2474 kc. , 50 watts; WPBG.
City of Medford, Mass., license to cover C.P. 1712 kc. , 50 watts;
W2XEM, City of Newark, N. J., license (Exp. Gen. Exp.) 30100 kc. ,
50 wa.tts, for period ending June 1, 1935; New, City of Tampa, Fla.
C.P. (Poaice) 2442 kc. , 100 watts; New, Town of Sharon, Mass, and
Same, Portable-Mobile, C.P. , frequencies 30100, 33100, 37100,
40100 kc. , 10 watts.
X X X X X
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2400 CALIFORNIA STREET
WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
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INDEX TO ISSUE OF OCTOBER 2, 1934+U:
ihli pPi1fii2,h$ o 0 i
i i o l
Educators Argue For More Evening Hours . 2
High Fidelity Receivers Impose New Responsibilities., . 5
Opposition To Sykes Confirmation Foreseen . 6
Dill Communications Commission Appointment Discounted., . ..7
Additional Communications Officials Appointed . 8
Broadcasting Code Meeting October 18 . 8
Short Wave Sets In Autos Opposed At Police Session . 9
Reporters Use Radio . 9
Telephone Depreciation Rate Hearing November 16 . . . 10
More Than 175,000 Attend N. Y. Radio Show . 10
A. T. & T, Executive Dies . . .11
Western Electric Speaker Can Be Heard For Miles.. . .11
Decisions Of Broadcast Division, FCC. . . . . . 11
No. 762
October 2, 1934*
EDUCATORS ARGUE FOR MORE EVENING HOURS
Although the educators who appeared at the first day's
hearings of the Federal Communications Commission, which is to
determine whether or not it shall recommend to Congress that more
radio facilities shall be allocated to educational, religious and
other non-profit programs, were severe in their criticism of com¬
mercial broadcasters, they did not advocate the scrapping of the
so-called American system of broadcasting, i.e. one supported by
advertising. Rather, the arguments seemed to be that the educa¬
tors be given more time on the air and that more of this time be
in the desirable evening hours.
It was definitely stated by Joy Elmer Morgan, Chairman of
the National Committee on Education by Radio that the Committee
has never contended for changing broadcasting in the United States
to a completely government-owned system, "contrary to statements
often made by commercial interests. 11
"The National Committee on Education by Radio recommended",
Mr. Morgan declared, "to the Federal Communications Commission, in
supporting its contentions, that existing educational public wel¬
fare stations be protected in their present privileges, that pro¬
visions be made for the improvement of the existing facilities of
these educational public welfare stations and for the establish¬
ment of additional stations of like character, as need for such
stations appears, by allocating for non-commercial broadcasting a
reasonable and adequate percentage of desirable channels and
privileges, and that in determining 'public interest, convenience,
and necessity', public welfare as a primary purpose of educational
stations should be given due and favorable weight. "
Commissioner Hampson Gary, in charge of the Broadcasting
Division, presided at the hearings and with him sat Col. Thad
Brown, Vice-Chairman of the Division, and Judge E. 0. Sykes, Chair¬
man of the Commission. The presentation of the educators' case was
in charge of Dr. Tracy F. Tyler, Secretary of the National Committee
on Education by Radio and the first witnesses were Mr. Morgan,
Dr. Henry Lee Eubank, who appeared in behalf of Dr. Glenn Frank,
President of the University of Wisconsin, representing the Associa¬
tion of College and University Broadcasting Stations, Joseph Wright,
University of Illinois, in behalf of the National Association of
Educational Broadcasters; Dr. Owen C. Brown, of the International
Council of Religious Education; Dr. Arthur G. Crane, President of
the University of Wyoming, representing the National Association of
State Universities and Dean H. J, Umberger, representing the Land-
Grant Colleges and Universities. The commercial broadcasters are
to have their inning later as the hearings are expected to last
two weeks.
2
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Mr. Morgan was the most caustic critic of the commercial
broadcasters.
11 It is apparent that there is great and growing dissatis¬
faction with American broadcasting"; the educator told the Communi¬
cations Commission. "The type of programs now being broadcast in
many instances degrades and debauches our children. I shudder for
the future of the nation unless someone in authority corrects this
intolerable situation. Many families are having great trouble with
children over radio programs. Numerous parents feel that certain
programs are offensive and objectionable and refuse to allow their
children to listen to them. "
Mr. Morgan read a letter from Upton Sinclair, Democratic
nominee for Governor of California, who wrote:
"The character of radio programs today constitute a
national scandal and disgrace. They are making our people the
most depraved and vulgar in the world. I have given my set away
and have refused to accept a new set offered to me. "
Dr. Lee DeForest wrote to Mr. Morgan that radio piograms
were "mediocre and moronic and all sales talks should be prohibited.
Dr. Frank suggested that the Communications Commission
instruct its technical staff to draw up a plan what would consti¬
tute a goal towards which the educational forces of the States and
nation may work. This plan should be based on the principle that
the public interest wriil best be served by a system of nations
serving States, or areas of considerable size, and closely inte¬
grated with the educational program for the State. He advocated
a nation~wride network of State controlled educational stations.
"We in the United States have been slow to conserve the
interests of the public in what was once public property", he con¬
cluded. "We have squandered our oil, our coal, our forests . . .
We have here the opportunity to conserve the public interest in
what is right a public agency. "
Mr. Wright said that in 1926 there were 537 broadcasting
stations in this country of which 105, or 19-§- percent were educa¬
tional but that in 1934 of the 602 stations, only 38, or 6.3 percent
were educational.
"I don't contend that the commercial system is all wrrong" ,
Mr. Wright continued. "I feel there is a place for commercial sta¬
tions, but I believe that educational stations should have a place
on the air. Many educational stations are in a position to increase
their power if permission can be secured from the Commission. "
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10/2/34
Mr. Wright said the most aggravating thing was the way
educational programs were frequently displaced by advertising pro-
grams. He said complete freedom could never be enjoyed as long as
educational programs were broadcast over commercial stations. A
grievance, he felt, was that desirable night time was not given to
the educators.
Dr. Crane admonished commercial broadcasters not to over¬
look the fact that they had a potential audience of 30,000,000
public school children. It was his opinion that schools receiving
broadcasts by master teachers showed improvement over ohose which
did not receive such broadcasts. He related that the City of
Cleveland had picked out the hardest subject, the least present¬
able, to try out over the radio - arithmetic - and that it was
such a success that they are continuing it0
The speaker said that it had even been demonstrated that
some subjects could be taught over the radio without a teacher.
He believed that the radio stimulated interest. Broadcasts, he
said, “vivified" the lessons. Teachers too often dealt with
things in the past but that radio brought instruction apace with
the times. He calculated that if the efficiency of education
could be increased 5/ by broadcasts, it would give an added
value of $150,000,000 to the sum spent on education in American
schools. He said the eye and ear impulses were greater than
those of the printed page.
Dr. Crane also spoke of the possibilities of radio in
adult education.
"We are not asking for exclusive rights", the Wyoming
College President went on, "but a respectable group of adults
like to have programs of an educational nature at a convenient
time in the evening without having them larded with advertisements. "
Dean Umberger declared that surveys showed that radio
exceeded correspondence and posters and that broadcasts were at
least one-half as effective as meetings. In one community of which
he spoke, he said that 69 percent of the farmers had radios, that
90 percent used them and that 13 percent of these adopted practices
as a result of what they heard over the radio.
The Kansas professor said that it was imperative, if the
efficiency of educational stations was ■ to be increased, that
they would have to have evening hours.
"Unless the utmost facilities are afforded educational
institutions", Dean Umberger concluded, "education will lag behind
exploitation. "
X X X X X X X X
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10/2/34
HIGH FIDELITY RECEIVERS IMPOSE NEW RESPONSIBILITIES
THe development of the so-called high fidelity receiver,
and the responsibilities which the advent of such a receiver would
impose upon the broadcaster, is explained by J. A. Chambers, of
Cincinnati, Chairman of the Engineering Committee of the National
Association of Broadcasters.
"The term 'high fidelity' is relative, and must not be
confused with perfect fidelity'', Mr. Chambers, who is Chief
Engineer of Station WLW, said. "The improved receivers falling
within this category are capable of reproducing a wider range of
frequencies than receivers heretofore commercially obtainable.
Because of this, they will much more readily show up any defects
and deficiencies in the broadcast transmission system. This
imposes upon the broadcaster the responsibility for, and the
necessity of, maintaining engineering standards much more rigid
than those which, unfortunately, a recent survey of several sta¬
tions indicated are now being adhered to. The survey disclosed
the fact that while a majority of the station installations were
capable of picking up and transmitting a signal at least equal to
the reproducing ability of the most modern receiver, as operated,
they fall short of their capabilities.
"Of those stations surveyed, 52/ are deficient in the
transmission of low audio frequencies and 66/ of them are defic¬
ient in the highs. Some of the deficiencies discovered in our
survey included excessive and extraneous noises, limited and
irregular frequency range, poor studio acoustics and pickup
technic. Neglecting to correct these conditions will result in
a gradual but steadily increasing unfavorable reaction on the part
of those listeners who invest in the newer receivers. '•
In view of the conditions as they exist, Mr. Chambers
said it was believed desirable by the Engineering Committee to
issue a "Handbook of Broadcast Stations Operating Practices. " The
"Handbook" will be designed to assist engineering personnel of
stations in attaining the maximum capabilities of their station
installations. It will recommend operating standards and mrill
standardize and give information regarding the methods of deter¬
mining and improving operating conditions and characteristics,
"It is too frequently assumed that because a transmitter
is purchased, possessing the latest engineering design and develop¬
ment, it will continuously function as originally designed", Mr.
Chambers concluded. "Unfortunately, such is not the case, and the
complicated and highly developed station installation of today
requires constant and regular checking and measuring through the
use of precision measuring equipment.
5
.
10/2/34
"Therefore the Engineering Committee recommends that
all stations place in the hands of their operating personnel the
necessary testing and measuring equipment of the latest type, to
assure the maximum operating capabilities of the station equipment;
that there be further study and analyses of technical practices and
standards with a view toward improving the use of the facilities
of member sta.tions to attain a higher standard; and furtherance
of the cooperative action by the Radio Manufacturers' Association,
the Institute of Radio Engineers and the National Association of
Broadcasters to improve the results of the entire radio broadcast
system from microphone to loud speaker, 11
X X X X X X X X
OPPOSITION TO SYKES CONFIRMATION FORESEEN
Since in that State the Democratic nomination is equival¬
ent to election, there is every indication that former Governor
Bilbo, of Mississippi, will succeed Senator Stephens in the United
States Senate next January. If so, Mr. Bilbo will be certain to
oppose the confirmation of Judge E. 0. Sykes, of Mississippi, as
Chairman of the Federal Radio Commission, and to do anything he can
to make it equally wa.rm for Paul Spearman, G-eneral Counsel of the
Commission, also from Mississippi,
The reason for this is that both the Judge and Mr.
Spearman supported Senator Stephens and returned to their native
State at primary time in the hope of defeating Governor Bilbo.
The situation was particularly difficult for Judge Sykes as Bilbo,
when Governor, appointed him to the Mississippi Supreme Court and
Senator Stephens was responsible for his appointment to the Radio
Commission and had much to do with his reappointment to the Com¬
munications Commission,
Governor Bilbo, in the meantime, came to Washington where
he secured a $6,000 job in the Agricultural Department, the princi¬
pal function of which, apparently, was to clip newspapers. Tiring
of this, he resigned and went back to Mississippi to make the race
against Senator Stephens for the Senatorial nomination.
The vote was so close that a second run-off primary had
to be held and in this Governor Bilbo won. There apparently is not
any apprehension among the friends of Judge Sykes that Governor
Bilbo, if elected to the Senate, will give him any real trouble.
Nevertheless, as one of them remarked, "You never can tell. "
In the old days, a single Senator was able to block a
nomination if he declared the candidate was personally offensive to
him, but of late years that hasn't held. Only recently Senator
Huey Long tried it and failed. If a single Senator were to suc¬
ceed in blocking a nomination, a good deal would depend upon the
standing of the Senator. If he had been in the Senate for some¬
time, was strongly entrenched as chairman of an important
6
10/2/34
committee where he had some vote trading value, or had a large
political or personal following in the' Senate, he might get away
with it0
Such would not be the case with Governor Bilbo, Judge
Sykes' friends argue, who would be new to the Senate and simply a
"noisy minority, " It is their contention that if objection was
rasied to Judge Sykes' confirmation, President Roosevelt would
really be the one to decide whether or not it should prevail. If
the opposition assumed serious proportions , it would then only be
a question as to whether or not Mr. Roosevelt cared "to crack the
whip. " However, since the entire Commission must be confirmed in
January and there is yet much water to go over the dam, it seems a
trifle early to speculate c.
If the Commission's report on the educational-religious
program situation should prove objectionable to one side or the
other, or if their telephone or telegraph activities should get
them into deep water, the chances of confirmation for one or all
the Commissioners might be jeopardized,. Only the happenings in
the next three months can tell the story c
X X X X X X X X
DILL COMMUNICATIONS COMMISSION APPOINTMENT DISCOUNTED
The charge by Senator Schall, of Minnesota, that President
Roosevelt intends to make Senator C. C. Dill Chairman of the
Federal Communications Commission seems to be taken lightly in
Washington. Senator Dill has time and again said that he would
not take a place on the Communications Commission if it were
offered to him.
"All poppycock" , the Senator said to this writer before
leaving Washington. "If I wanted to rema.in in public life, do you
think I would give up a Senatorship to serve in a relatively sub¬
ordinate position as a Communications Commissioner or Chairman? I
am leaving the Senate because I am fed up on public life.
"I don't know eventually what my plans will embrace but
for the time being I propose to practice law with offices in
Spokane and Washington, D. C. "
Senator Schall1 s letter to President Roosevelt read as
f ollows :
"It is in connection with your present plan to make
Senator Clarence C. Dill Chairman of the Communications Commission
upon his retirement from the Senate on January 1 next, that I
address yon this letter.
11 In taking this liberty of making public your plans, I
do so because Senator Dill is engaged at the present moment in
organizing a telegraphic news agency, which will be operated under
7
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10/2/34
Government censorship and in competition with the Associated Press,
the Hearst News Service and the United Press*
"Of course, you and the public are well aware of the
fact that the office of Chairman of the Communications Commission
has been left vacant, and I have been advised that Senator Dill is
retiring from the Senate only because he is to be appointed to
this post by you.
"If this is not true, and you are not backing Senator
Dill in the organization of this news service, it seems to me you
should make public your opposition to his plan. "
Senator Dill's proposal for a radio news gathering
organization has been taken under advisement by the National
Association of Broadcasters and it is expected that a Committee
will be named shortly to study the subject.
xxxxxxxxxx
ADDITIONAL COMMUNICATIONS OFFICIALS APPOINTED
Lieut. Commander E. M. Webster, of the U. S. Coast Guard,
was appointed. Senior Engineer of the Communications Commission to
serve under Dr. C. B. Jolliffe. Commander Webster has for many
years been the Communications Engineer of the Coast Guard.
George B. Porter and Frank Roberson were appointed
Assistant General Counsels of the Commission. Mr. Porter was
Assistant General Counsel of the old Radio Commission. Mr.
Roberson hails from Mississippi but has been practicing law at
Pelham, N. Y.
Arnold C. Hansen was named Chief Accountant of the
Commission.
X X X X X X X X
BROADCASTING CODE MEETING OCTOBER 18
James W. Baldwin, Executive Officer, has called a meet¬
ing of the Broadcasting Industry Code Authority to be held in
Washington, Thursday, October 18th.
X X X X X X X X
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SHORT WAVE SETS IN AUTOS OPPOSED AT POLICE SESSION
The Nation's police officials were urged by Lieut0
Donald 3. Leonard, Superintendent of the Michigan State Police
Department, to take all possible steps to prevent private citizens
from installing short wave receiving sets in their automobiles
which would enable them to keep in contact with broadcasts from
police stations throughout the country.
Discussing the progress of police radio communication
at the 41st annual convention of the International Association of
Chiefs of Police meeting in Washington this week, Lieut. Leonard
declared that reception of police messages by private citizens
"could work havoc with polic administration. :i He declared in one
case he knew of a murderer who had been able to escept because he
overheard plans for his capture which were broadcast over a police
radio system and were picked up by a private set0
Lieut. Leonard also said ambulance- chasing lawyers are
using short wave sets in order to more quickly learn of bad
accidents. At present he estimated there are 5,000 radio-
equipped police cars in daily operation in 128 cities.
xxxxxxxxx
REPORTERS USE RADIO
The reporter with a radio transmitter strapped to his
back is getting to be more and more a commonplace sight, especially
when he has to get quick flashes to his editorial office from a
remote place not easily reached by wire lines.
Using short wave apparatus of only a half watt power,
both the Associated Press and the United Press, leading press
associations, secured from the Federal Communications Commission
authority to "cover" the national amateur golf championships at
Brookline recently via radio. The light-weight portable apparatus
is effective primarily over short distances, and the sports
reporters telegraph their running stories via. the short and ultra-
short waves to the nearby club house whence they are sent forth
to the country's newspapers via the wire telegraphs.
XXXXXXXX
9
10/2/34
TELEPHONE DEPRECIATION RATE HEARING- NOVEMBER 16
The Telephone Division having under consideration the
orders issued by the Interstate Commerce Commission in its Docket
No. 14700, Depreciation Charges of Telephone Companies, effective
January 1, 1935, and also having under consideration a communica¬
tion from Andrew R. McDonald, Chairman of the Executive Committee
of the National Association of Railroad and Utilities Commissioners
dated September 14, 1934, requesting until May 1, 1935, for pre¬
senting to this Commission by the State Commissions recommenda¬
tions as to depreciation rates, and being advised in the premises:
Ordered (Order No. 10), that parties to this proceeding
and other interested persons be notified that on November 16, 1934,
following the hearing and argument on the Report of the Interstate
Commerce Commission in Docket No. 25705, the Commission will hear,
briefly, arguments on:
(1) The effective date of depreciation rate order in
Interstate Commerce Commission Docket No. 14700, and,
(2) the time and manner of receiving recommendations from
State Commissioners in reference to depreciation rates.
X X X X X X X X
MORE THAN 175,000 ATTEND N. Y. RADIO SHOW
Although not quite up to the attendance of last year,
209,000 persons, the 1934 Radio-Electrical Show at Madison Square
Garden was attended by 175,000 and was a big success. There were
more exhibitors this year.
On the basis of a survey among the exhibitors, it was
announced, however, that more business ha.d been transacted this
year than last season. More than $1,500,000 business was done in
1933 as a direct result of the show. Thore- W'ero eil&Q' ffw>]ae
"Crowds were more serious in their study of the exhibits
this year than last", said Joseph Bernhart, manager.
Ralph Neumuller, managing director of the Electrical
Association of New York, which sponsored the show which lasted
eleven days, said that "every indication of marked confidence in
the possibilities of a considerably increased volume of business
during the coming Fall and Winter months in electrical and radio
merchandise" had been given by the exposition.
Plans for another radio-electrical show next September
are already under way; several exhibitors have signed up for the
same space occupied this year, while others have announced they
intend to rent larger space, the Garden management se.id.
X X X X X X X
- 10 -
10/2/34
A. T. & T. EXECUTIVE DIES
Charles H. Wilson, 73, for 19 years an Executive of
the American Telephone & Telegraph Company, died yesterday (Monday)
of heart disease at his home at Mountain Lakes, N. J.
His work with telephone companies covered 38 years,
beginning in 1881, five years after Alexander Graham Bell invented
the telephone. His most notable work was in connection with the
development of long-distance lines and with the laying of under¬
ground telephone cables. He retired in 1919, after heading the
American Telephone & Telegraph Co. ' s long lines department since
1900.
X X X X X X X X
WESTERN ELECTRIC SPEAKER CAN BE HEARD FOR MILES
A new developed loudspeaker manufactured by the Western
Electric Company, so powerful that it can magnify the human voice
1,000,000 times, was in operation for the first time at the
International Yacht Races where it was used aboard the Coast Guard
Cutter "Tampa" to warn shipping off the course and issue instruc¬
tions to spectator craft. It can be made 500 times more power¬
ful than the ordinary loudspeaker. At full power it hurls sound
into the air with the force of a 50-pound hammer blow. Over flat
terrain, in still air, it can project intelligible speech a
distance of several miles.
Use is foreseen for the new speaker in directing throngs
of people either too vast or in the presence of too much noise for
the ordinary loudspeaker to be heard. Fire fighters within burn¬
ing buildings, deafened by the crackle of flames, could be directed
by the giant voice. A rescuing vessel at sea could bellow instruc¬
tions to a distressed crewor to persons in life-boats. In place of
the fog horn’ s simple warning the loudspeaker could give spoken
directions.
X X X X X X X X
DECISIONS OF BROADCAST DIVISION, FCC
Applications Granted
October 2, 1934
WHDL, Tupper Lake Broadcasting Co. , Inc. , Tupper Lake,
N. Y. , C.P. to move transmitter and studio from Tupper Lake to
Glean, N. Y, ; KHJ , Don Lee Broadcasting System, Los Angeles, Cal. ,
modification of C.P. to make changes in authorized equipment,
extend commencement date to Oct. 12, 1934 and completion date to
11
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11/2/34
90 days thereafter; KG-B, Don Lee Broadcasting System, San Diego,
Cal., modification of C.P. to make changes in authorized equip¬
ment, extend commencement date to Oct. 12, 1934 and completion
date to 90 days thereafter; KFRC , Don Lee Broadcasting System,
San Francisco, Cal., modification of C.P. to make changes in
authorized equipment, extend commencement date to Oct. 12, 1934
and completion date to 90 days thereafter; WATR, Harold Thomas,
Waterbury, Conn. , consent to voluntary assignment of license to
WATR Co., Inc.; WDB J , Times-World Corp. , Roanoke, Va. , license to
cover C.P. , 930 kc. , 1 KW, unlimited time; WGAL, WGAL, Inc.,
Lancaster, Pa., license to cover C.P., 1500 kc. , 100 w. night,
250 w. daytime, unlimited; WKBF. Indianapolis Broadcasting, Inc.,
Indianapolis, Ind., license to cover C.P., 1400 kc. , 500 w. ,
night, 1 KW day, specified hours; WTOC , Savannah Broadcasting Co.,
Inc., Savannah, G-a. , license to cover C.P., 1260 kc. , 1 KW, un¬
limited time.
Also, WIND, Johnson-Kennedy Radio Corp., Gary, Ind.,
license to cover C.P., 560 kc. , 1 KW night, 2-g- KW day, unlimited;
WCBD, WCBD, Inc. , Zion, Ill. , modification of license to change
studio location from Zion to Waukegan, Ill. ; WOWO, Main Auto Sup¬
ply Co. , Fort Wayne, Ind. , authority to determine operating power
by direct measurement; WSGN, Broyles Furniture Co., Birmingham, Ala.,
modification of C.P. extending completion date to Oct. 10, 1934;
KMLB, Liner's Broadcasting Station, Inc., Monroe, La., modification
of C.P, extending completion date to Dec. 1, 1934; KGW, Oregonian
Publiding Co., Portland, Ore., modification of C.P. to make changes
in equipment and extend commencement date to Oct. 15, 1934 and
completion date to 180 days thereafter; KSD, The Pulitzer Publish¬
ing Co., St. Louis, Mo., modification of C.P. extending commence¬
ment date to Oct. 30, 1934 and completion date to Dec. 29, 1934;
WHA, University of Wisconsin, Madison, Wisconsin, license to cover
C.P., 940 kc. , 2\ KW, daytime; KALE, Kale, Inc., Portland, Ore.,
authority to install automatic frequency control equipment; WTRC,
Truth Radio Corp., Elkhart, Ind., C.P. to make changes in equipment.
Also, W9XAL, The First National Television Corp.,
Kansas City, Mo., C.P. (Exp. Visual) for additional transmitter of
150 watts, and additional frequencies 42000-56000, 60000-86000 kcs. ;
New, National Broadcasting Co. , Inc. , Portable-Mobile, C.P, (Exp,
Gen. Exp."), frequencies 17310, 2 5700, 26000, 27100, 31100, 34600,
37600, 40600, 86000 to 400000 kc. , 1 watt (this covers 5 applica¬
tions for C.P. and licenses for same); Same Co. , New York, C.P.
(Exp. Gen. Exp.); frequencies 25700, 26000, 27100, 31100, 31600,
34600, 35600, 37600, 38600, 40600, 41000, 86000-400000 kc. , s 150
watts; Robert J. Woolsey, Chicago, Ill., C.P. (Exp. Gen. Exp.),
31600, 35600, 38600 and 41000 kc. , 25 watts; W10XDD, Evansville on
the air, Inc., Portable-Mobile, license to cover C.P. (Exp.
Gen. Exp.), 31100, 34600, 37600, 40600 kc. , 2.4 watts.
XXXXXXXX
12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
INDEX TO ISSUE OF OCTOBER 5, 1934.
FCC Rapidly Grows Into Political Plum Tree . . . 2
Griffith Heads College Broadcasters . . . 3
Caldwell Predicts 1934 Production Will Exceed 4,000,00 0 Sets . 4
Educator Says Radio Facilities More Than Needed Nov/ . 5
Service Exchange Wire Agreements Under Scrutiny . .....8
Rotterdam Telephone Company Carries Radio Programs . 10
Industry Notes . 11
ASCAP To Move To Radio City . 11
Applications Granted By Telegraph Division, FCC . . . 12
No. 763
.
• - ■ ' ‘
FCC RAPIDLY GROWS INTO POLITICAL PLUM TREE
Great oaks from little acorns grow, especially if the
acorns happen to be political plums. When the Federal Radio
Commission was created seven years ago, the first year's budget
was approximately $100*000 and it had 57 employees.
It has just been revealed that the present set-up of the
Radio Commission's successor, the Federal Communications Commission,
provides for an organization of 595 persons. No cost figures were
given but an estimate made by one usually well-informed person was
that the annual budget of the wire and radio commission would
probably exceed $1,000,000 and might go up to $1,500,000. The
last appropriation for the Radio Commission was $660,000, which
the Communications Commission will use as a starter.
Because of the large number of purely political appoint¬
ments the FCC is rapidly growing into one of the New Deal's promis¬
ing political plum trees. It is commonly reported that except
possibly in the Civil Service appointments that anyone to secure
a job at the Federal Communications Commission must have "a
clearance" either through Postmaster General Farley or Herbert L.
Pettey, Secretary of the FCC, generally understood to be Farley's
personal representative on the Commission.
The explanation of the new Commission setup embodies
the fact that three divisions of three members each have been
created with Chairman E. 0. Sykes, serving on each division. The
Divisions and personnel follow:
Division #1 a Broadcasting - Commissioner Hampson Gary,
Chairman, Commissioner Thad H. Brown, Vice-Chairman.
Division #2 - Telegraph - Commissioner Irvin Stewart, Chair¬
man, Commissioner George Henry Payne, Vice-Chairman.
Division #5 Telephone - Commissioner Paul A. Walker,
Chairman, Commissioner Norman S. Case, Vice-Chairman.
The Secretary of the full Commission, Mr. Pettey, under
the new plan has under his jurisdiction the following sections
and personnel:
License, which employs 36 persons; Dockets - 4 persons;
Minutes - 3; Public Reference, Correspondence and Records - 25;
Accounting - 7; Duplicating and Supplies - 9, Press - 3; Sub¬
clerical section - 5; a total of 92 persons.
2
10/5/34
The Engineering Department, of which Dr. C. B. Jolliffe
is Chief Engineer, will probably be the largest division of the
Commission, providing for 174 employees, of whom 110 will be in the
field force, checking broadcast stations to see that they keep on
their assigned frequency, thus providing good radio reception for
listeners.
This department is composed of 5 sections - Telegraph,
Broadcast, Telephone, International and Field. The Telegraph
section, of which E. K. Jett is Chief, is to be composed of 23
persons; the Broadcast section, Andrew D. Ring, Chief - 18;
Telephone, W. G. H. Finch, Chief - 17; International Section,
Gerald C. Gross, Chief - 4; and the Field Section, W. D. Terrell,
Chief - 112 persons.
The second largest unit will probably be the Accounting,
Statistics and Tariff section, to be composed of 160 persons. This
section will be charged with the task of analyzing and summarizing
the numerous reports filed, and to be filed with the Commission in
response to its orders to radio stations, telegraph and telephone
companies.
Arnold C. Hansen has just been named Chief Accountant of
this Section. He has been Senior Examiner of the Interstate Com¬
merce Commission in the bureau of formal cases for a number of
years, and assisted Dr. W. M. W. Splawn in the House Investigation
of Communications Holding Companies.
The third largest section will likely be the Valuation
Department. The tentative set-up calls for 117 employees by this
unit.
The organization of the Law Department, of which Paul
D. P. Spearman is General Counsel, has not been completed, nor
the Examiners’ Unit. Recently the Commission named Frank Roberson,
of Pelham, N. Y. , and George B, Porter, of Des Moines, Iowa,
Assistants to the General Counsel.
XXXXXXXX
GRIFFITH HEADS COLLEGE BROADCASTERS
W. I, Griffith, Director, Station WOI, Iowa State College
of Agriculture and Mechanic Arts, Ames, la. , was elected President
of the Association of College and Universiiy Broadcasting Stations
at the annual meeting held in Kansas City, Mo.
Harold G. Ingham, Director of Extension and of Station
KFKU, University of Kansas, was named Vice-President; Dr. B. B.
Brackett, Director, Station KUSD, University of South Dakota,
and T. M. Beaird, Director, Station WNAD, University of Oklahoma,
succeeded themselves as Treasurer and Executive Secretary
respectively.
XXXXXXXX
10/5/34
CALDWELL PREDICTS 1934 PRODUCTION WILL EXCEED 4,000,000 SETS
Approximately 790,000 radio sets, representing
$32,000,000 at retail selling prices, were produced and sold to
the trade during the second quarter of 1934, 0. H. Caldwell,
former Federal Radio Commissioner, reports.
’’This represents a sharp reduction from the 984,746
sets produced and sold during the first quarter of 1934; also a
drop “below the corresponding figures for the same period of
1933, 848,302 sets, although an increase above the retail dollar
volume for the 1933 second quarter, which was $24,506,800", Mr.
Caldvirell explains. "From this it may be concluded that the unit
price of radio sets has risen considerably during the past twelve
months, the average retail value having gone up from $33.60 for
the 1933 second quarter, to about $40.50 for the 1934 second
quarter, which closed July 1. "
An increase in unit set value of 20 per cent, is indi¬
cated by these figures, showing that the consoles and higher-
priced models are again coming to the fore, and that the recent
popularity of the midget and cigar-box models is relatively waning.
"Automobile radio sets have not come up to expectations
for 1934, it now is apparent", Mr. Caldwell continued. "Sales of
these units for automobile installation have run considerably
behind the budgets set up by the makers at the beginning of the
year, based on 1933 sales. It is this drop in automobile sets
which mainly accounts for the 1934 second quarter falling behind
1933 for the same period. "
Total sales of radio sets for the first half of 1934 are
still considerably ahead of the first half of 1933. The first
six months of 1933 produced 1,436,134 sets; the first six months
of 1934, 1,774,746 sets. The corresponding retail dollar volumes
rose from $42,000,000 to $70,000,000.
"Looking back on preceding years, 46 per cent of the
total 1932 output was reported in the first half of that year",
Mr. Caldwell concludes, "while 30 per cent of 1933' s output came
in the first six months,
"Averaging these half-year ratios, and applying them to
the figures for the first half of 1934, so far available, indi¬
cates the total year's production for 1934 will be about
4,400,000 radio sets."
X X X X X X X X
4 -
10/5/34
EDUCATOR SAYS 15 % RADIO FACILITIES MORE THAN NEEDED NOW
Judging from the opinion of Armstrong Perry of the
National Committee on Education by Radio, setting aside 25 per¬
cent of the radio facilities, as Congress attempted to do last
session, for educational and religious programs would have been
too large a percentage to allocate for this purpose. At the
hearing before the Federal Communications Commission, Commissioner
Thad Brown asked Mr. Perry if he knew how Congress had arrived at
the 25 percent figure? Finally Mr. Brown asked the witness if he
knew how Senator Fess arrived at a figure of 15 percent in a bill
the latter introduced several years ago?
"From your experience, do you think 15 percent of the
radio facilities of this country would be too much or too little
to set aside for educational and religious programs?" Commissioner
Brown inquired.
"It is not too much for ultimate development", Mr.
Perry replied. "It is more than is needed for the immediate
future. "
Mr. Perry pointed out that the Federal Trade Commission
does not scrutinize advertising continuities until after they have
been put on the air.
"In the case of objectionable advertising, that leaves
the public unable to recover damages without going into a law suit",
was Mr. Perry’s comment, "and that cannot be financed by the
average listener. In Canada they inspect the copy first. "
"Would you recommend such a procedure in this country?"
Mr. Perry was asked.
"I would", he replied.
Mr. Perry said that he had been informed by a lawyer
that bills for radio litigation in this country amounted to from
$600,000 to $1,000,000 a year.
"One of my deepest regrets", he observed, "is that at
least a quarter of a million dollars of philanthropic money that
was intended for the development of the educational broadcasting
stations has had to go for the protection of the rights of these
stations. "
Indicating that educational people had been encouraged
by the Government interest in their problem, was a letter from
Arnold R. Barr, Vice-President of the Chicago City Club, in which
he said the City Club in Chicago is ready to apply for a broad¬
casting license which it proposes to use in presenting educational
programs and discussion of political, civic and other public
affairs. This station, he explained, would be financed by the
revenues obtained from the commercial use of a portion of the
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broadcasting privilege. Mr. Barr said that the Chicago City Club
has also endeavored to persuade other institutions in Chicago to
make similar applications for licenses and has prompted the
organization of the Chicago Civic Broadcast Bureau to assist
such agencies in such matters as the purchase of transmitting
service, the sale of time for commercial broadcasting, the main¬
tenance of studios, the production of programs, etc.
Harris K. Randall, of the Chicago City Club, who is to
head the Chicago Civic Broadcast Bureau, told the Communications
Commission that he saw no reason why a church or university should
not have a channel on which it could sell time, the same as a
commercial sta.tion.
There is a widespread trend tov^ard Government ownership
of broadcasting stations, James A. Moyer, State Director of
University Extension of Massachusetts, testified,
"It might be checked here by change of attitude on the
part of our Government and of the commercial broadcasters toward
educational stations", Mr. Moyer said. "More than 30,000,000
people in the United States are giving their entire time to
education as pupils, teachers, administrators and executives, but
only 2.5 percent of radio time is under their control."
Eighteen educational stations reported to Dr. Tracy F.
Tyler, of the National Committee on Education by Radio, with
regard to the cost of their operations. Exclusive of talent,
their budget averaged $9,878 per station for 1934-5.
Dr. James N. Rule, Superintendent of Public Schools of
Pennsylvania, said that for some years they had had a State
broadcasting station WBAK.
"It was a tremendous advantage to us in developing
our educational program on the air and we were rapidly building
up a school of the air in Pennsylvania", Dr. Rule testified.
"But on the complaint of the local broadcasting commercial sta¬
tion, our channel was taken away from us. "
Dr. Rule presented an affidavit from R. D. Hetzel,
President of the Pennsylvania State College, to the effect that
WPSC, its station, was forced off the air because of restrictions
of the Radio Commission with regard to daytime hours which pre¬
vented a sufficient budget being secured to maintain it,
"The increasing requirements and the attitude of the
Radio Commission over a considerable period of time gave us the
very definite impression that the Commission did not favor edu¬
cational stations and was disposed to make it difficult for them
to continue", Dr. Hetzel set forth in the affidavit, "Because
of increasing restrictions by the Commission, when it was
estimated that $20,000 additional would be necessary, the sta¬
tion was closed down as our Board had no assurance that it would
be continued in the future without the expenditure of larger and
larger sums. "
6
10/5/34
Dr. Rule said that if Pennsylvania could establish a
chain of State educational broadcasting stations, the possibil¬
ities would be tremendous in the field of developing popular
education, not only in the case of boys and girls of school age,
but also would make for a better life for our whole population.
The hope was expressed by Father Cornelius .Deeny, who
appeared in behalf of the Jesuit Educational Association of
Santa Clara, Cal. , that "even in radio broadcasting there would
be a New Deal. "
"The object of educational broadcasts is the dissemina¬
tion of the truth; the object of commercial broadcasting is to
sell something, to make profits", Father Deeny submitted to the
Commission. "The two, it seems to me, cannot help but be in
inharmonious conflict.
"And what I think is to be deplored most about all
these 90 broadcasting channels, is that they are controlled
almost entirely by commercial interests so that the most power¬
ful gift God has given the world for the dissemination of know¬
ledge and of truth is not and cannot be used in the United States
for that purpose for which it seems to be and is so fit.
"In asking that fixed percentages of broadcasting facil¬
ities be allocated to educational and other non-profit making
institutions, we are not asking for anything so very new or un¬
heard of. We have something of a precedent in American history.
I allude, in this country, to the land grants, where land was
set aside by the United States exclusively for the uses of educa¬
tional institutions. I allude also to the practices of many
nations today wherein radio broadcasting education certainly is
honored and the profit motive is kept in abeyance.
"We are told that all, or almost all, nations give an
abundance of time to cultural and educational broadcasts and
only in two - Mexico and the United Stations - is radio broad¬
casting on a profit-making basis", Father Deeny said further.
Today radio station licensing in this country is sort
of a grab-bag procedure, S. Howard Evans, of the Ventura Free
Press , of Ventura, Gal., asserted to the Communications Commission.
"Everyone is trying to get all he can from the Commis¬
sion", Mr. Evans concluded. "Anyone is free to file application
for the facilities of anyone else, thus starting costly litigation
and increasing the expense of station operation. "
XXXXXXXXX
7
10/5/34
SERVICE EXCHANGE WIRE AGREEMENTS UNDER SCRUTINY
Telegraph companies having exclusive contracts with rail¬
roads, terminals and bus lines based upon agreements for the ex¬
change of service have been ordered by the Telegraph Division of
the Federal Communications Commission to show cause why an order
should not be entered against them. Also they have been asked to
fill out a questionnaire and notified that a hearing on the subject
of their contracts has been set for November 5th.
All this is embodied in Order No. 10 issued by the Divi¬
sion, which follows:
it The Telegraph Division, having under consideration the
provisions of section 201 (b) of the Communications Act of 1934,
and being informed that certain telegraph carriers have entered into
contracts with other common carriers not subject to the Act, doing
business within the United States, and which are based in whole or
in part upon agreements for the exchange of services, and verified
copies of said contracts having been furnished to and filed with
the Commission, pursuant to the provisions and requirements of
Telegraph Division Orders Nos. 1 and 4; and it appearing to said
Telegraph Division that a full inquiry should be made with respect
to said contracts, and that if said contracts are violative of law
or adversely affect the public interest the Telegraph Division should
promulgate an order, rule or regulation to prevent any telegraph
carrier subject to the Act from entering into any or further like
contracts, or operating under any existing contract with any other
common carrier not subject to this Act, for the exchange of their
services, if it is found that operation thereunder by the carrier
subject to this Act is violative of law or contrary to the public
interest:
"It is ordered, that a hearing shall be held in the offices
of the Commission in Washington beginning Monday, November 5, 1934,
at 10:00 A.M. , for the purpose of inquiring into the provisions and
effect of said contracts between telegraph carriers subject to the
jurisdiction of this Commission and the common carriers aforesaid
not subject to the Act;
"It is further ordered that each and every telegraph car¬
rier subject to the jurisdiction of this Commission which has enter¬
ed into any contract for the exchange of services between it and any
common carrier not subject to the Act, and under which any such tele¬
graph carrier has or claims any exclusive right, benefit, or privi¬
lege, shall appear before the Telegraph Division of the Federal Com¬
munications Commission at said hearing, to show cause why said Tele¬
graph Division should not enter an order:
"(1) Declaring that the provisions of all contracts, agree¬
ments or arrangements for the exchange of their services be¬
tween the respondent and common carriers not subject to the
Act, doing business within the United States, which create
or permit the existence of any exclusive right, benefit or
- 8 -
10/5/34
privilege in favor of the respondent, or which restrain
or lessen or purport to restrain or lessen competition by
any other telegraph carrier within the United States to
be contrary to and against public interest; and
"(2) Prohibiting the respondent from claiming, relying
upon, enforcing or attempting to enforce any such exclus¬
ive right, benefit, or privilege.
"And it is further ordered that each and every telegraph
carrier subject to the jurisdiction of the Federal Communications
Commission which has any contract, agreement, or arrangement with
any common carrier not subject to the Act, for the exchange of their
services, and which is required by any provision of this Order to
appear before said Telegraph Division as hereinbefore provided for,
shall, not later than October 29, 1934, file with the Telegraph
Division of the Federal Communications Commission a brief including
(1) a complete statement of facts, and (2) a citation of authori¬
ties and any and all decisions, orders, or opinions of any courts
or commissions upon which such telegraph carrier may rely in opposi¬
tion to the making or enforcing by the Telegraph Division of an
Order affecting the contracts aforesaid as hex^einbefore set out. "
Commissioner Stewart, Chairman of the Telegraph Division,
made the following statement:
"The second proviso of Section 201 (b) of the Communica¬
tions Act of 1934 is as follows: 'Provided further, That nothing
in this Act or in any other provision of law shall be construed to
prevent a common carrier subject to this Act from entering into or
operating under any contract with any common carrier not subject to
this Act, for the exchange of their services, if the Commission is
of the opinion that such contract is not contrary to the public
interest. '
"In adopting its Order No. 10, the Telegraph Division is
not passing judgment upon these contracts. The Division will make
its decision as to whether particular contracts are in the public
interest only after hearing the statements of the interested com¬
panies. That portion of Order No. 10 indicating provisions which
the Division might incorporate in a ruling, is intended to give the
companies notice of the type of action whioh the Division might
take with respect to any of the contracts found to be contrary to
the public interest. This procedure will give the companies the
opportunity to express themselves, first, as to whether the con¬
tracts are in the public interest, and, second, as to the type of
ruling to be issued by the Commission v/here particular contracts
are found to be contrary to the public interest,'1
XXXXXXXXX
- 9
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i - *
10/5/34
ROTTERDAM TELEPHONE COMPANY CARRIES RADIO PROGRAMS
In addition to its telephone service, the Rotterdam
Telephone Company also operates a radio distributing system, which
was started in October 1931, and counted 7,526 subscribers on
Januarh 1, 1933, and 11,244 on January 1, 1934.
The entrance fee, which amounted during 1933 to 15
florins, was reduced to 10 florins in March, 1934. Monthly sub¬
scriptions amounted to 2.50 florins (A florin is about 68 cents).
The telephone service makes the connection from the
street cable to an amplifier in the house of the subscriber which
brings the programs at loudspeaker strength. The amplifier
remains the property of the service. The subscriber buys a loud¬
speaker for his own account.
A small isolated wireless receiving station has been
built outside the town, where 15 receiving sets have been installed.
All sets are permanently tuned in, but only two foreign programs
at a time are relayed to subscribers along two wires of the tele¬
phone distributing cables. Several times a day two other foreign
stations are tuned in instead, according to the desirability of
the programs. Publicity is given every day in the local news¬
papers regarding the stations that will be relayed at different
hours of the next day. Besides two foreign stations, the sub¬
scriber has the permanent choice between the two domestic broad¬
casting stations, programs of which are relayed direct from the
studios of these broadcasting stations via the central telephone
station at Rotterdam along two telephone cables hired from the
Government Telephone Service. The entire service is operated from
the central telephone station at Rotterdam, and no permanent staff
is in attendance at the receiving station, which, therefore, is
operated under the remote-control system.
The radio exploitation account over 1933 shows a profit
of 28,515 florins, while a total amount of 278,177 florins was
received for subscriptions.
The original value of the entire system (receiving sta¬
tion, cables, connections and amplifiers) amounts to 396,400
florins, while in addition 199,000 florins was spent in 1933 for
expansion.
XXXXXXXX
10 -
J-V// J.
INDUSTRY NOTES
Defending the action of Nate C. Lord, manager of Station
WAVE, of Louisville, for cutting Maj. G-en. Smedley Butler off the
air, John F. Royal, Vice-President of National Broadcasting Company,
said this was done because General Butler's "remarks offended
against the standards of good taste maintained by the NBC and its
affiliated stations in the interests of the radio audience.
"The National Broadcasting Company indorses the action
of our affiliated station, WAVE, in exercising its editorial pre¬
rogative in protecting the listening audience against what they
felt was not in good taste", he added.
Five new announcers were recently added to the New York
staff of the American Broadcasting System-WMCA network. They were
Frank Knight, who will be heard on all ABS feature programs, Jerry
Mohr, Mark Cassidy, George Kogan, and Edward Krug.
Details of the revised form of application for import
permits for radio materials into China have been translated and
issued by Andrew W. Cruse, Chief, Electrical Division, Department
of Commerce, Washington, D, C.
Hoyt S. Haddock, President of the American Radio Tele¬
graphists Association, asserted yesterday (Oct. 4), according to
an A. P. report, that 2,000 wireless operators on American ships
would go on strike Tuesday next.
Five years ago a lady in Manhattan wrote to WOR, New York,
asking for the advertised pamphlet on foot troubles. The card,
postmarked 10 P.M. , Station H, October 13, 1929, was delivered to
WOR postmarked 7:30 P.M. , September 28, 1934, just fifteen days
short of a fourth of a generation after it was sent. Efforts are
being made by the station management to dig up the ancient booklet
or to make amends for the delay.
XXXXXXXXXX
ASCAP TO MOVE TO RADIO CITY
V
The American Society of Composers has signed a lease
for over 12,000 sq. ft. of space in the RCA Building in Rockefeller
Center and expects to take possession within a very short time,
according to a New York disptach. The lease runs for 10 years and
the space is on the 45th floor.
X X X X X X
- 11 -
O <
APPLICATIONS GRANTED BY TELEGRAPH DIVISION, FCC
New - City of Cleveland, Ohio, Dept, of Police, Exp.
Gen. Exp. C.P. 30100, 33100, 37100, 40100 kcc , 100 watts; New -
City of Alhambra, Cal., C.P. 30100, 33100, 37100, 40100 he. , 50
watts; New - City of Kansas City , Kans., Portable-Mobile, 3 appli¬
cations, C.P. 30100,' 33100," 37100, 40100, 86000-400000, 401000 kc.
and above, power 9 watts; W6XCD, W6XCE, W6XCF, City of Los Angeles,
Dept, of Police, Portable-Mobile, modification of C.P. extending
commencement date to Sept. 12, 1934 and completion date to December
12, 1934; W5XM, Durward J. Tucker, Dallas, Texas, modification of
C.P. extending completion date from Oct. 19 to Nov. 19, 1934;
W9XCA. City of Kansas City, Kans. , license to cover C.P., frequen¬
cies 30100, 33100, 37100, 40100 kc. , 100 watts (Gen. Exp. service);
W9XCB-W9XCR respectively (17 applications) City of Kansas City,
Kans., Portable-Mobile, licenses to cover C.P. , frequencies 30100,
33100, 37100, 40100 kc. , 4.5 watts.
Also, W8XBB , City of Detroit, Mich., Police Dept.,
license to cover C.P. 30100, 33100, 37100, 40100 kc. , 150 watts;
W8XB0; Same applicant, Portable-Mobile, same as above, except power
25 watts; W2XGH , Borough of Roselle Park, N. J. , Portable-Mobile,
license to cover C.P. 30100, 33100, 37100, 40100 kc. , 0.5 watts;
W2XGI, Same applicant, granted same except power 20 watts; W2XGJ,
same granted except power 0.5 watts; W6XER, City of Long Beach, Cal,,
Portable-Mobile, license to cover C.P. frequencies 30100, 33100,
37100, 40100 kc. , 4.5 watts; W2XAU, Lawrence C. F. Horle, Newark,
N. J. , ren. and mod. of license, frequencies 41000-55000, 60000-
200000 kc. , 2 watts, Al, A2 and A3 and special for high quality
telephony, frequency band of emission: 16000 cycles; New - Inter¬
state Geophysical Exploration Co., Portable - St, Louis, Mo. (for
use in Texas and Louisiana), 2 applications, C.P. , geophysical
serv. , 1600, 1652 and 1700 kc. , 15 watts; KIKP, Ruby Community
Radio Committee, Ruby, Alaska, C.P. public pt- to pt. tel. and tel.
1606 kc, , 50 watts.
Also, WMED, Mackay Radio & Telg. Co. , Inc. , near Atlanta,
Ga. , modification of C.P. approving exact site of transm. at Coving¬
ton, Ga. and delete freq. 7670 kc. licensed freqs. 4655, 8960 kc. ;
WKD, RCA Communications, Inc., Rocky Point, N. Y. , mod. of C.P.
extending completion date to Nov. 6, 1934; WBL , Radioraarine Corp. of
America, Buffalo, N. Y. , mod, of lie. to change hours of operation
from 11 continuous during season of Great Lakes navigation" to un¬
limited during season of Great Lakes navigation"; Same for WGO ,
Chicago, Ill.; W2XM, W2XGO , Bell Tel. Labs., Inc., Holmdel, N. J. ,
modification of license to change location from fixed to Portable-
Mobile; KIDM, Teller Radio Board, Teller, Alaska, C.P. for new pt.
to pt. telg. and coastal telg. station in Alaska, 246, 460 and 500
kc. , 50 watts; WPDY; City of Atlanta, Ga. , Dept, of Police, C.P. to
move transmitter approximately 100 ft. ; WPGO, Town of Huntington,
N.Y. , C.P. to change transm. site locally, also auth. for operator
on duty at control point only; KNFF, City of Leavenworth, Kans. ,
license to cover C.P. 2422 kc. , 50 watts; KVP, City of Dallas, Tex.,
license to cover C.P. 1712 kc. ; WPFY, City of Yonkers, N.Y. license
to cover C.P. 2442 kc. , 400 watts.
XXXXXXXX
h * •*
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
i r7iȣ
*
INDEX TO ISSUE OF OCTOBER 9, 1934.
Public Affairs Radio 5 s Greatest Use, Ickes Opinion. . 2
Ceylon Broadcasting Trucks Give Natives Free Sample . *3
New National Government Educational Network Proposed...., . 4
Merchandising Help On Radio Rate Cards., . 6
New Commission's Chief Accountant Has Held Many Positions.. . 7
Zenith Radio Tries New Copy Appeal, . . .8
DeForest Wins Supreme Court Test. . . 9
A.B.S. Begins Operation Sunday With 21 Stations. „ ...... . 10
Commercial Organization Praised In Balbo Communications . 011
Mutual Broadcasting System Organizes; Macfarlane, President. .... 12
No. 764
October S, 1934.
PUBLIC AFFAIRS RADIO'S GREATEST USE, ICKES OPINION
As important as are the uses and as great as are the
values of the radio along other lines, its greatest good lies in
the opportunity that it offers for the enlightenment and education
of the people in public affairs, Secretary of the Interior Ickes
told the National Advisory Council on Radio in Education last
Monday at their convention in Chicago. It is having a profound
effect upon the mobilization of public opinion.
"The radio has opened up a new, broad avenue to an intel¬
ligent comprehension of public affairs which never existed before.
While it has only scratched the surface, it has tremendous pos¬
sibilities as a means of political education", Secretary Ickes
argued. "The ability to reach people in greater numbers and
reach them more directly and quickly than it has ever been pos¬
sible heretofore to do is of untold importance in our national
life today. The radio has never been used so much by any Admin¬
istration as it has by the one now in power as a means of acquaint¬
ing the people with the policies of the Federal Government.
"Not only have the President and other members of the
government taken their case to the people by means of the radio
on many occasions, but those who are opposed to and criticize the
policies of the Administration have done likewise. And this is
entirely proper. It is as it ought to be, I believe in opposi¬
tion frankly and honestly expressed. It would be bad for the
country as well as for the Administration if uhere were no opposi¬
tion able to express itself forcibly. We believe in freedom of
speech by means of the radio as implicitly as we do in freedom of
the press. "
The Cabinet officer believed that radio can be particu¬
larly influential in making the Nation feel and act as a unit.
"All parts of this great country, and even its outlying
possessions, can be reached simultaneously and directly", he con¬
tinued. "Those who live in rural communities can be shown the
nature of the problems confronting all of us as quickly and as
vividly as can those whose homes are in the great cities. Thus
every section of our people, many of whom have had little, or at
best, tardy news by previous means of communication, are given the
opportunity actively to participate in the discussion of questions
which vitally concern all of us. "
Secretary Ickes emphasized the fact that the man who
wishes to do so can get in full the speeches of those in public
lif e„
2
10/9/34
"He has the opportunity of hearing speeches actually
delivered", the Secretary of the Interior elaborated. "He can
judge of the sincerity of the speaker and he can weigh his argu¬
ments as his theme unfolds. Not only he and his neighbors, but
his fellow citizens in the furthermost corner of the country, can
hear the same speech at the same time. Nor do they have to con¬
fine their attention to a discussion of one side of a public ques¬
tion. They can hear both sides of it and thus be in a favored
position to weigh the merits of the points at issue. "
As a means of communication the radio is within the
means of everyone, the speaker declared. It is not only access¬
ible, but it is cheap. He said parenthetically that the radio can
be made especially useful in stimulating in the people a taste for
fine and discriminating English.
Mr. Ickes declared finally that in the interest of the
public the radio must always be kept free.
"So important are the maintenance a.nd enlargement of our
democratic ideals that some means ought to be devised of reaching
the people by means of the radio at regular intervals with
authoritative information on important current events", the
Interior Secretary concluded. "I suggest the radio because it is
the only vehicle for disseminating accurate, impartial and un¬
contaminated news that will reach all parts of the country at the
same time. The great broadcasting companies can perform an out¬
standing and distinct public service by seeing to ±t that essential
information is supplied to the people. "
X X X X X X X
CEYLON BROADCASTING TRUCKS GIVE NATIVES FREE SAMPLE
An intensive campaign of propaganda with a view to
increasing the number of radio owners and telephone subscribers
is being carried on in Ceylon. An especially equipped demon¬
stration truck has been touring the island for some time and
bringing these two forms of communication to many people for the
first time.
Improved financial conditions in Ceylon and a better
quality of program have been instrumental in fostering the demand
for radio sets. The outlook for the future is extremely bright,
and the sales during the second half of the present year should
show a material improvement.
XXXXXXXX
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NEW NATIONAL GOVERNMENT EDUCATIONAL NETWORK PROPOSED
That a new national regional network to be operated by
the Government and devoted to educational and other cultural non¬
profit making programs, inclining those having to do with the
discussion of public affairs, was proposed by Betliuel M. Webster, Jr.
representing the American Civil Liberties Union, of New York. Mr.
’Webster made the suggestion to the Federal Communications Commis¬
sion, which is now taking testimony in advance of its recommenda¬
tion as to whether or not a certain proportion of radio facilities
shall be allocated to educational and religious programs by Congress.
"The major network companies should be permitted to con¬
tinue as competitive, commercial agencies subject to strict control",
Mr. Webster said. "Each should be required to serve the whole
country and to that end I should assign to each a minimum number
of clear channels, possibly in the range below the present band,
with ultra high power and the privilege of operating twenty-four
hours a day. This would involve changes in the location of net¬
work stations to a coherent, scientific plan.
"I should establish a new national network, or its
equivalent in regional networks, to be operated by the Government
over a trial period of, say, five years. In each State, depending
upon its size and program, and producing facilities, I should
license from one to four whole time regional stations to serve
local interests and needs.
"Under the suggested setup, there would be, say, 250 to
300 stations operating with high power on full time, self-sustain¬
ing basis on desirable, interference free channels. It is our
view that the adoption of such a proposal would strengthen the
network companies and improve network service; that it would offer
a very interesting experiment in public ownership without sacrifice
of the proved advantages of the American system; that it would
purge the industry of undesirable units; and that it would simplify
the problem of regulation*
"We think it can be done pursuant to the regulatory
powers of the Commission without raising effective objection under
the due process clause of the Constitution, but if it must be done
by limited condemnation, we believe it is worth the price. "
Mr0 Webster said that he thought it had been a fault of
the American system that public groups have gained access to the
air, not as a matter of right, but as a matter of grace and the
networks have exercised unintelligent interference with free ex¬
pression of opinion over the air. It was his opinion that instead
of having 600 stations, this country can stand and support pro¬
perly, on a commercial basis, about 200 or 300 stations.
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Otis F. Wingo, of the National Institute of Public
Affairs, said it was his believe that the American system should
be praised for the advances it has made and for the way its
advantages had offset its weaknesses. He believed, however, that
American broadcasting could go a lot further in the use of educa¬
tion for cultural purposes.
A religious issue was injected into the hearings when
Judge Joseph F. Rutherford, President of the Peoples Pulpit Associa
tion, declared that the Roman Catholic Hierarchy, through its
agents had mutilated official records of the Congressional hear¬
ings held last Spring. This mutilation was attributed by implica¬
tion by Anton Koerber, Judge Rutherford’ s representative in
Washington, to Rev. John B. Harney, Superior General of the Paulist
Fathers. He based this upon the allegation that Elton J. Layton,
Clerk of the House Interstate Commerce Committee had stated that
Father Harney was the only one who could have had access to that
particular manuscript.
Mr. Layton testified at the hearing, however, that others
could have had access to this particular manuscript.
"I brand the charge a lie”, Father Harney declared when
he appeared before the Commission. I!I deny totally that I ever
approached Mr. Layton or any other member of the Committee for an
opportunity to examine the official record.
"At that time I wasn’t even in Washington. I was badly
crippled with arthritis and confined to the French Hospital in New
York. If necessary I can present my receipted bill to show my
stay there from May 10 to May 23rd. "
Ohio State University has done more than other State
universities, John W. Bricker, Attorney General of Ohio, testified.
He said that about 12 people were employed at the University broad¬
casting station. He explained that the Ohio School of the Air,
which broadcasts over the University station, and WLW, of Cincinnati
is a function of the State Department of Education, as distinguish¬
ed from Ohio State University. "We are here only for the purpose
of bringing to the Commission the possibilities of educational
broadcasting", Mr. Bricker concluded, "and we believe those pos¬
sibilities are not at all limited by what Ohio State University has
done, but that it is a minimum standard that might be accomplished
at this time, had the others given the same attention to it that
we have.
"We ask for no change in the assignment that has been
allotted to us and we feel that we ought to be given the opportun¬
ity not only of maintaining what we have, but of developing it to
the broadest extent. We do not feel we have quite reached that
extent at the present time. "
Following Attorney General Bricker, R. C. Higgy, Director
of the Ohio State University station appeared.
XXXXXXXX
- 5 -
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10/ 9/ 34
MERCHANDISING HELP ON RADIO RATE CARDS
A unit merchandising plan has been established for the
14 radio stations represented by Free & Sleininger, Inc, , Chicago,
designed to clean up a situation that has been the source of much
uncertainty and controversy - namely, just how much marketing co¬
operation may an advertiser expect from a radio station.
Under the uniform unit plan, which is being incorporated
this month into the rate cards of the respective stations, the
advertiser is entitled to one unit of merchandising assistance
without charge for every dollar of station time contracted for.
It is pointed out this plan eliminates the "horse trading" tactics
often employed in an effort to get a better merchandising arrange¬
ment. In the past, many stations have given away almost as much in
service as they received in advertising revenue.
Discussing this plan with Editor A Publisher, J. L. Free
and C. L. Sleininger explained that the new arrangement is an out¬
growth of several months of intensive study of marketing coopera¬
tion in both newspaper and radio fields.
Radio station operators have been confronted with the
same problem newspapers have had to face, namely, that often the
advertiser with a comparatively small schedule demands the most
merchandising cooperation. Under the unit system, there is a
definite limit to the amount of free service, but the stations
will furnish additional service at extra cost.
"Newspaper-owned stations have created a "bugaboo" in
the minds of independent station owners regarding the demands of
advertisers for merchandising service", declared Mr, Free. "A
reasonable amount of such service is not only necessary from the
standpoint of the advertiser, but it is good for either the radio
station or the newspaper,, If the advertiser just buys white space
in the paper, or time on the air, without merchandising help, his
campaign is likely to be a flop and the customer to be spoiled as
an advertiser. However, we feel that such a service should be
provided for in the rate card,,
"We believe that not more than one out of ten advertisers
will want an appreciable amount of the service we have set up
under our new plan, which tends to cut down the station's average
cost for marketing cooperation. "
Mr. Free stated experience has taught them that the most
popular merchandising service is that of mailing out letters or
printed matter to the trade* The second most popular feature is
that of arranging an audition of the program for important local
outlets.
6
o\
10/9/34
In commenting upon the close parallel between this type
of cooperation and that given by newspapers, Mr. Free stated the
Fargo (N.D.) Forum is considering adopting the same plan as
established by WDAY, Fargo, in order to eliminate competition on
merchandising cooperation between these two advertising mediums in
that territory. He also remarked that WICN, Minneapolis-St. Paul
station, operated jointly by the St, Paul Pioneer Press & Dispatch
and the Minneapolis Tribune , has adopted the plan0
The other stations which have adopted the unit plan are
WGR-WKBW, Buffalo; WHK, Cleveland; WIND, G-ary, Ind. ; WJJD, Chicago;
WAIU, Columbus; WDAY, Fargo, N. D. ; WKZO, Kalamazoo, Mich.; WHB,
Kansas City; KFAB, Lincoln- Omaha; WAVE, Louisville; KOIL, Omaha-
Council Bluffs; WMBD , Peoria, Ill. , and CKLW, Windsor,
X X X X X X X X
NEW COMMISSION'S CHIEF ACCOUNTANT HAS HELD MANY POSITIONS
The Federal Communications Commission gave out the follow¬
ing biographical sketch of Arnold C. Hansen, recently appointed
Chief Accountant of the Accounting, Statistics and Tariffs Section
of the FCC:
"Mr. Hansen is a lawyer and certified public accountant.
He has had seven years of college training, three years of which
were at New York University, and four years at George Washington
University, Washington, D. C. He was appointed a Certified
Public Accountant in the State of New Jersey, having passed the
examination of the New Jersey State Board of Certified Public
Accountants in 1911.
"As an attorney, from August 1, 1928, to August, 1934,
he has held the position of Senior Examiner in the Bureau of
Formal Cases of the Interstate Commerce Commission. From August
11, 1933, until the present time he has directed the staff and
supervised the work in connection with the preparation of a report
based on the investigation of the communications companies under
House Resolution No. 59 and House Joint Resolution No. 572. A
preliminary report on communications companies, House Report No.
1273, and generally known as the "Splawn Report" has been submitted.
He is directing and supervising the work of the final report on
communications companies.
"From March, 1923 to May, 1926, Mr. Hansen was Senior
Consolidated Auditor in the Bureau of Internal Revenue, Income Tax
Department. From June 1926 to July, 1928, he was Senior Examiner
of the Bureau of Accounts of the Interstate Commerce Commission.
From Jan. 1917 to Dec. 1918, he was the official representative in
America for the Russian and English Bank, Ltd. , London Branch,
which was later reorganized as the British & North European Bank.
From Oct. 1917 to Nov. 1920, he was a Director, and Vice-President
in charge of finance and accounts, of Flora American Plywood Co. ,
Ltd. , New York. From Dec. 1915 to Feb. 1919. he was Comptroller
and Assistant Secretary of the New York Dock Co. During the same
period he was also a director, Comptroller, and Secretary of the
N.Y. Dock Railway. "
X X X X X X
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10/9/34
ZENITH RADIO TRIES NEW COPY APPEAL
A new idea in copy appeal*, is being featured in national
newspaper advertising on Zenith radios of Chicago appearing in 60
metropolitan cities, including distributor points and first class
dealer locations. The idea is to dramatize '‘triple filtering" of
Zenith radio, which "sifts out noise" and improves world-wide
reception.
In addition to the 500-line advertisements, showing
pictures of international figures, such as Mussolini, President
De Valera of Ireland, Ramsay MacDonald and Premier Herriot, includ¬
ing a sharp half-tone reproduction of the face of each and a
blurred figure, Zenith Radio Corporation, Chicago, is also using
tieup "teaser" copy to be placed on the same page, calling atten¬
tion to the larger advertisement.
The blurred and sharp reproductions of celebrities are
used to illustrate the "before and after" qualities of triple
filtering. The black and white tieup ads of 40 lines serve a com¬
bined purpose. They are worded so as to call attention to the
larger copy, with such headlines as: "Hello, up there DeValerai "
Included in this tieup copy is mention of the Zenith auto radio
for "music at the wheel. "
Charles Daniel Frey Company, Chicago agency placing the
Zenith account, is requesting that the "teaser copy" be placed at
the bottom of the page, with at least one column separating the
two Zenith advertisements. Local dealer tieups are suggested by
the agency.
Typical headlines of the "triple filtering" advertise¬
ments include: "Here Is President DeValera as Ireland Knows Him] 11 ,
"Here's the Real Mussolini. . . All of Himj " and "The Real Ramsay
MacDonald in Living Reality] "
All of the ads feature the new Zenith radio receiving
set, capable of short wave reception. In addition to newspapers,
Zenith is using Time magazine in its national program.
X X X X X X X X
Former Governor James M. Coj£, publisher of the Dayton
News and the Miami News ha.s purcha.sed Sta.ui.on WLBW , at Erie, Pa. ,
which he hopes to move to Dayton. He has also entered into a
purchase option agreement with Station WIOD, Miami.
XXXXXXXX
8
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10/9/34
DE FOREST WINS SUPREME COURT TEST
The Supreme Court refused Monday (Oct. 8) to reopen the
long battle over the claims of Lee DeForest and Edwin H. Armstrong
to the invention of the "feed back circuit", an essential link of
the modern radio receiving apparatus.
The court denied Mr. Armstrong's request for a rehearing
in connection with its decision of May 21. which sustained the
contentions of the Radio Corporation of America, representing Dr.
DeForest, as opposed to those of the Radio Engineering Laboratories,
Inc. , sponsor for Mr. Armstrong.
Justice Cardozo noted in the decision that as far back
as 1908, Dr. DeForest patented a form of vacuum tube which he named
"the audion", a device, which the justice remarked, "established
itself almost at once as a revolutionary improvement in the art of
transmitting sound at great distances by wire and through the air. 11
Many experiments were made to develop the capacity of
this device, and "among those interested and curious", was Mr.
Armstrong, then a student at Columbia University Engineering
School. In January, 1913, Mr. Armstrong conceived the idea that
through certain changes, "there would be a feed back or regenera¬
tion of energy, whereby the plate in the audion would become an
independent generator of continuous oscillations."
"It was a brilliant conception, but another creative
mind, working independently, had developed it before in designs
and apparatus till then unknown to the art", the decision read.
"DeForest, with his assistant, Van Etten, had been working during
the Summer of 1912 along two lines of thought. "
Justice Cardozo continued by saying that on April these
workers received a "clear note, the heterodyne beat note", from
radio signals at San Francisco0
The decision of last May was modified slightly in Monday's
action, however, although the general effect was not changed. The
latest ruling ordered that the opinion be amended by striking out
the words "which means that the frequency could be varied at will",
and substituting therefore, "which means or was understood, we
are told, by DeForest, to mea.n that by other simple adjustments
the frequency of the oscillations could be varied at will, "
X X X X X X X X
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10/9/34
A.B.S. BEGINS OPERATION SUNDAY WITH 21 STATIONS
After foul* months' experimental operation, the American
Broadcasting System, the president of which is George B. Storer,
will begin daily operation as a major network Sunday, October 14th.
There will be a gala program to celebrate the event. WMCA, New
York, will be the key station,,
"With a minimum of preliminary discussion and with no
extravagant claims, the American Broadcasting System has become
a network reality through an evolution of slow and consistent
development to its present stage where the plans of Mr. Storer and
his associates are practical and sound. ABS reaching its majority
of full basic membership will consistently give the American listen¬
ing public the radio programs it wants to hear", an announcement of
plans of the American Broadcasting System sets forth,
"The new system will concentrate in sports broadcasting
and special events, in addition to sending through its multiple
outlets the best in the music of the classics and the moderns,
the finest and most popular dance orchestras, expertly enacted
drama, news, comedy and excellent informative broadcasts. Special
features of a spectacular nature will predominate the program
structure.
"The stations of the ABS membership have been in business
as independent local outlets for many years in which they have
gained success, popularity and the good-will of the listeners in
their cities. They have learned what the listeners like to hear on
the air, and it is with this combined knowledge that the plans of
the American Broadcasting System have been formulated.
"The hours of daily network operation will be from 9:00 AM
to 1:00 A. M. The full roster of stations includes WOL, Washington
WCBM, Baltimore; WDEL, Wilmington; WIP, Philadelphia; WTNJ, Trenton;
WMCA, New York; WPRO, Providence, R. I.; WHDH, Boston, with affilia¬
tions to be effected also with WAAB in the same city; WEBR, Buffalo;
WWVA and KQV, Pittsburgh and Wheeling, W. Va, ; WJBK, Detroit; WFBE,
Cincinnati; WJJD, Chicago; WIND, Chicago and Gary, Ind. ; WHBF, Rock
Island and Davenport, and WIL, St. Louis.
"There will be a Cleveland outlet with arrangements pro¬
bably being completed with WJAY. Certain programs may be heard in
the Buffalo area through WKBW in addition to WEBR. Station WWVA,
which is located 18 miles northeast of Wheeling, serves Pittsburgh
with over a 500 micro- volt signal and will transmit ABS programs
until 8:30 P.M. EST. In the later evening hours KQV will broadcast
in Pittsburgh. The new station of the Waterbury Republican- Ameri¬
can in Waterbury, Conn. , temporarily assigned the experimental
identification W1XBS, will be in the network.
"The ABS Board of Directors includes Walter S. Mack, Jr. ,
Paul H. Nitze, James K. Norris, J. H. Ryan, of Toledo; George B.
Storer; Robert H. Thayer and John Hay Whitney,"
X X X X X X
-10-
COMMERCIAL ORGANIZATION PRAISED IN BALBO COMMUNICATIONS
It is of interest to note that a commercial organization
was able to provide perfect communication in the execution of a
military aviation problem, Ellery W. Stone, operating Vice-
President of Mackay Radio, and a Lieutenant Commander in the U. S.
Naval Reserve, writes in the United States Na.val Institute Proceed¬
ings. He refers to the successful flight to Chicago and return in
1933 of a quadron of 25 large Italian military seaplanes of the
Royal Italian Force under the command of Gen. Italo Balbo. Through
the Mackay radio station at Sayville, L. I. , contact was maintain¬
ed with General Balbo ' s plans from the time they left Italy. In
recognition of this, Col. Sosthenes Behn, President of the Inter¬
national Telephone and Telegraph Corporation, and Mr. Stone were
made Grand Officers of the Crown of Italy with the rank of
Commanders. Others in the organization who were decorated were
the following:
Commanders of the Crown of Italy-
H. H. Buttner, Vice-President of Mackay Radio, and
Capt. Pilade Leoni, International Telephone and Telegraph Corpora¬
tion; Chevaliers of the Crown of Italy: Edgar D. Thornburgh,
Advertising and Press Manager, International Telephone and Tele¬
graph Corporation; T. E. Nivison, General Superintendent; J. A.
Bossen, Marine Commercial Manager; and W. 0. Lee, Manager, Sayville
Station, Mackay Radio; and T. N. Powers and Charles W. Oram,
traffic experts of Postal Telegraph.
"Although a peace-time and commercial mobilization,
this communication problem necessarily was handled and directed by
the writer and his staff - most of whom are Naval Reservists or
have had other military service - as a military problem", Commander
Stone writes. "That such a mobilization could be effected in
peace time by a commercial organization without in any way affect¬
ing the efficient handling of its normal traffic, however, should
be a significant demonstration of the great potentialities of
this all-American communication organization to our Army and Navy
in time of war; not only from the standpoint of available personnel
but material as well. "
Mr. Stone said that the International Telephone and Tele¬
graph Corporation became interested in this historic flight late
in 1932, when one of the system representatives in Europe was call¬
ed to Rome to discuss with General Balbo tentative arrangements
for the communications organization to serve the needs of the
flight. General Aldo Pellegrini, director of the Royal Air Force
Training School in Orbetello, Italy, and Colonel Mario Infante,
director of Communication Services of the Air Ministry, were de¬
tailed to come to New York to select sites for the North American
bases and to confer with the communication officials of the I.T.T.
for the purpose of organizing the most ambitious chain of radio,
cable, and wire communications ever attempted for an aerial
venture, in fact, for any world event.
11
Mr. Stone was detailed to organize the communications
set-up of the International system in the execution of the role
intrusted to the company by the Italian Government.
” The director of Naval Communications ordered the
Atlantic coast naval radio stations north of New York to keep
constant watch during the ‘hops5 from Cartwright to Shediac and
from New York to Shoal Harbor as auxiliaries to Mackay Radio1',
Mr. Stone writes,, 11 The squadron, however, was never out of com¬
munication with the I.T.T. control center and, happily, no disaster
occurred requiring the assistance of the military services.
"The seaplanes themselves were equipped with highly
efficient and compact radio telegraph sets. Each consisted of a
400-watt transmitter and receiver capable of operation on both
low and high frequencies (500 to 2,500 meters and 22 to 99 meters).
Each plane also carried a special receiver for radiocompass use.
"The efficiency of this military equipment can be gauged
by the fact that during pre- flight tests two of the planes were
able to hold 2-way communication with our radio station WSL, at
Sayville, L. I. Worthy of note in this instance is the fact that
the planes were lying on the waters of Orbetello Bay, 4000 miles
away and shielded from WSL by the rising hills of Orbetello. "
XXXXXXXX
MUTUAL BROADCASTING SYSTEM ORGANIZES; MAC FARLANE, PRESIDENT
The organization of a new chain of ra.dio stations, the
Mutual Broadcasting System, each member of which will remain
independent and will continue its present policies but which at
the same time will provide facilities for combination hook-ups,
was announced last week.
Contracts were signed by Station WON, of Chicago, owned
and operated by The Chicago Tribune, and Station WOR, of Newark,
N. J. , owned, and operated by the Bamberger Broadcasting Service,
Inc. Others that will make time available when possible are the
Grosley Radio Corpora. t ion1 s station, WLW, of Cincinnati, and the
Kunsky-Trendle Broadcasting Corporation • s station, V/XYZ, of Detroit.
W. E. Macfarlane, Vice-President of WGN, Inc., and busi¬
ness manager of The Chicago Tribune, is president of the new
organization., He described the setup as "a truly mutual arrange¬
ment. "
Other officers are Alfred J, McCosker, Chairman of the
Board; Theodore C. Streibert, Treasurer, and E. M. Antrim, Secre¬
tary.
XXXXXXXX
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL- Not for Publication
i s
INDEX TO ISSUE OF OCTOBER 12, 1934.
Calls American Broadcasting System World's Best . 2
London Broadcasts King's Murder, Then Baseball.; . ...5
Day And Night Broadcasting Quotas Established
New 100 Watters Needn't Expect Increased Power Later
Restrictions For Officer Of More Than One Carrier. . .
Argentina Tube Factory Directed By Anerican
Blames Radio For Song Income Loss .
Applications Granted By Broadcast Division, FCC . 10
500,000 Watt Triplets Unknown To Commission . 11
WSMB-WADC Field Intensity Survey Recommended . 12
American Radio Sets Popular In France..., . 12
No. 765
<£><£> CO CD Oi
CALLS AMERICAN BROADCASTING SYSTEM WORLD'S BEST
by Robert D_ He ini
Declaring that the policy of the broadcasting industry
has always been one of willing cooperation with religious, educa¬
tional, charitable, civic and other similar organizations, Philip
G. Loucks, Managing Director of the National Association of Broad¬
casters, said that the broadcasting system in this country was
not surpassed anywhere. Mr. Loucks was the first witness to take
up the cudgel of the commercial broadcasters in the hearing of
the Federal Communications Commission to determine whether it
should recommend to Congress that a definite percentage of the
broadcasting facilities should be allocated to educational, reli¬
gious and other cultural and non-profit radio programs. For
more than a week the Commission had been hearing educators, clergy¬
men and others presenting arguments in favor of the non-profit
stations. An entire week is expected to be occupied in presenting
the case of the commercial broadcasters and this presentation
will be charge of Henry A. Bellows, Chairman of the Legislative
Committee of the National Association of Broadcasters.
"Briefly", Mr. Loucks said, addressing the Commission,
"we shall endeavor, through our documents and witnesses, to paint
a true picture of American broadcasting as it exists today, devoid
of all argument and shorn of all reference to the earlier struggles
endured by pioneering broadcasters who, in a short span of years,
developed in the United States the best broadcasting system in the
World - a system in which three Presidents have expressed their
faith and confidence and which not only gives to the public the
best program service in the World but combines with that service,
as President Roosevelt recently pointed out, a benefit to all
classes of business which in turn stimulates buying power and
assists commerce greatly.
"The Association, which it is my privilege to represent,
is opposed to the proposal 'that Congress by statute allocate
fixed percentages of radio broadcasting facilities to particular
types or kinds of non-profit radio programs or to persons identi¬
fied with particular types or kinds of non-profit activities. 5 As
will be shown, similar proposals have been considered by the member¬
ship in general meetings from time to time and upon each occasion a
resolution was unanimously adopted opposing statutory allocations
by the Congress. I am therefore simply stating the considered
judgment of the entire membership when I say that we are opposed to
the principle of such allocations.
2
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10/12/34
"Our testimony will show our policy of willing coopera-
tion with educational and religious institutions to have been in
full effect for many years. Our testimony will show that any
change, however, slight, in the present system is undesirable
from the standpoint of the public and disastrous from the stand¬
point of broadcasters and the vast majority of all religious,
educational, charitable, civic and other similar organizations* "
Mr. Loucks presented 269 sworn statements from broad¬
casting stations submitted in response to a questionnaire sent out
by the National Association of Broadcasters. Mr. Bellows later
analyzed these statements as follows:
Total hours of broadcasts of the 269
stations in cooperation with educa¬
tional and informative organizations 75,773
Aggregate hours of educational broadcasting 111,833
Total hours of broadcasting 669,000
Percentage of broadcast hours in cooperation
with organization 11.3
Percentage of total educational broadcast
hours 16.7
Total evening (6-11 P.M. ) hours of
cooperative broadcasts 14,554
Total evening (6-11 P.M.) hours of other
educational broadcasts 9,575
Aggregate evening (6-11 P.M.) hours of
educational broadcasts 24,129
Total evening hours of broadcasting 182,000
Percentage of evening broadcasts in coopera¬
tion with organizations 8.0
Percent of other evening educational
broadcasts 5.3
Percent of total evening educational
broadcasts 13.3
Mr. Bellows said that WLW, at Cincinnati, using a half¬
million watts, perhaps the most powerful station in the world, was
giving 24 percent of its time to educational and informative pro¬
grams and that these broadcasts were kept on the air despite com¬
mercial bids for the time. He remarked, drily, that the station
had reported, however, that about 93 percent of its listeners
appeared to prefer "other programs than educational and inform¬
ative broadcasts".
Mr. Bellows said that the unanimity of opinion as to
what the public, as revealed by the station reports, prefers "was
amazing." He informed the Commission that $25,000,000 to
$28,000,000 a year represents the amount the individual stations
spend a year for broadcasting, a greater part of which goes for
program costs. There are 5,316 full-time station employees and
some 20,000 people paid either directly or indirectly by the
broadcasters.
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The Broadcasters’ official said that some 10,000 letters
had been received by the stations thanking them for their services.
He read a statement from one of the stations setting forth that it
had turned down a commercial program in favor of an educational
broadcast.
"There is an impression that our stations accept com¬
mercials in deference to educational programs", the witness
observed. "The answer is - they don't. An example of the la,tter
is the case of Station WRVA, at Richmond, Va. , which has kept a
University of Virginia program on the air from 6:45 tc ? P.M. for
the past five years. This despite the fact that the time has
become most valuable due to the fact that it is just ahead of
' Amo s ' n ' Andy 1 . "
Mr. Bellows said that it didn't always follow that the
largest educational institutions did the best job of broadcasting.
"I remember a 15-minute talk on ethnology from a smaller
college which produced almost as much fan mail as a major station
feature." The fact that so many stations reported "we believe we
are the first station to do this" suggested to the speaker the
need of coordination.
"Unofficially I should say", the witness suggested, "if
a committee composed of leading educators and broadcasters got
together and considered howr to do a better job rather than what
facilities they should get, the results would be far more satis¬
factory than at present. "
Mr. Bellows said that the statements showed that every
station was cooperating with all religious groups, "that all 269
stations tell the same story. "
The witness asserted that the law is not clear now with
regard to wdiat shall or shall not go on the air and that in view
of the Nebraska court decision holding the broadcaster responsible,
broadcasters were "jittery". No broadcaster, he said, desires to
censor programs or to interfere with the freedom of speech.
"There is a tremendous desire to promote the freedom of
speech but a constant fear of violating the law in doing it", the
Legislative Chairman added. "Personally I think it is better to
allow someone to say 'damn1 over the radio than to tell him he
can't say 'damn'.
"The broadcasters will welcome any suggestions the Com¬
mission can give to improve educational programs. We stand ready
to give far more educational programs than the educators have
asked for. "
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A Committee of Broadcasters will be appointed at an
early date to meet with a Committee of Educators, J. T. Ward,
of Station WLAC, Nashville, Tenn. , newly elected President of the
National Association of Broadcasters, advised the Commission.
"A statutory allocation of broadcasting facilities by
Congress would result in an upheaval of the radio industry”, Mr.
Ward warned. "It would disrupt the entire industry and would
create chaos for the public. ”
The Broadcasters' president said he had found the
sentiment to be against too much talking on the radio whether it
was political or educational. He said his station devoted about
20 percent of its time to educational broadcasts.
"Our experience is that the broadcasters are in a
better position to judge the type of programs to be presented",
Mr. Ward concluded, "and I beg the Commission to leave this matter
in the hands of the broadcasters. "
XXXXXXXXXX
LONDON BROADCASTS KING'S MURDER, THEN BASEBALL
An American listener absorbed in hearing details of the
assassination of King Alexander over short wave from Station GSA,
London, finally heard the announcer say in the English manner for
which British announcers are so famous: "Now we'll give you the
American baseball score. The Cardinals beat the Tigers 11 to 0
and we shall proceed to hear the disturbance which took place at
Detroit in the 7th inning. "
This was when Medwick, of St. Louis, kicked at Owen, of
Detroit, and started the incipient riot which included the hurl¬
ing of pop bottles, oranges, apples and anything else that came
handy. The American listener was somewhat puzzled as to how the
inning was to be reproduced from England as it was then late at
night here, about 2 o'clock in the morning there, and the base¬
ball game had been finished hours ago.
However, hearing the cracking of the bat, the cheering
of the crowds and finally details of the great row which resulted
in Judge Landis ordering Medwick off the field, the American
listener quickly realized that the British station had made a
record of the disturbance at the time it had been broadcast in
this country and hours later was reproducing it from London so
that the entire world might hear.
XXXXXXXX
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DAY AND NIGHT BROADCASTING QUOTAS ESTABLISHED
Heretofore the broadcast quota system for the distribu¬
tion of radio facilities has been considered as a single basic
unit but because of the difference of atmospheric conditions at
the different periods, the Broadcast Division of the Communica¬
tions Commission has decided that there should be a "night
quota" and a "day quota."
Explaining its action, the Division sets forth:
"Interference caused by stations at night is different
from that caused at day. Consequently, the broadcast quota due,
the limit of which is interference, has been separated into two
parts, 'night quota' and 'day quota'. The quota charge for a
station operating both day and night has been divided into two
parts, the power and time of operation between 6:00 A.M. and 6:00
P.M. , being charged to 'day quota' and the night being charged to
'night quota'. A day station, the operation of which is entirely
between 6:00 A.M. and 6:00 P.M. is charged only to 'day quota'.
"In increasing the daytime quota due the several States,
it is not the intention of the Commission to license additional
new daytime stations unless a full showing has been made that
public interest will be served in making such a grant. The
applicant must definitely establish the need for the additional
service, the financial and technical ability to operate such a
station in accordance with the Rules and Regulations, and that the
station can exist on the basis of the grant requested.
"A survey of the stations in small cities or communities
indicates that it is extremely difficult for such stations to
operate even though they have full time. The possibility of a
daytime station under similar circumstances becoming a success is
greatly decreased. "
The Division authorized the maximum daytime power on
regional channels increased to 5000 watts.
X X X X X X X X
NEW 100 WATTERS NEEDN'T EXPECT INCREASED POWER LATER
In setting a hearing for the numerous applicants for
the new 100 watt station privileges, Chairman Hampson Gary, of
the Broadcast Division of the Communications Commission, warned
them that there would be no chance of their subsequently "horn-
ing-in" on the larger station class by increasing their power.
"Past records snow that in many cases applicants hope
to obtain a limited facility and expect at a. later date to
materially increa.se that facility. The present allocation does
not permit such later increases and accordingly the Commission
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must have proof that the assignment, as requested, has a reason¬
able promise of success", the official admonition set forth.
The new stations are to be added to carry out the pro¬
vision of the Communications Act that there may be an increase
in 100 watt stations if they don’t interfere with others already
established.
Those seeking the new station privileges will have to
show that there is public need for their facilities, that the
station can provide programs and meet technical requirements.
"A review of existing stations in small centers of
population reveals that a majority of these stations are having
great difficulty in operating with adequate programs, maintenance
and personnel", the Commission informs the applicants.
The Broadcast Division decided that the new 100 watt
stations will be confined to the 1200, 1210, 1310, 1370, 1420
and 1500 kilocycle frequencies. Among the applicants for these
new licenses who have been granted hearings are:
Great Western Broadcasting Association, Inc. , Logan,
Utah; American Broadcasting Co. , Washington, D. C. ; Winger and
Thomas, Chattanooga, Tenn. ; Albert T. Roche & Harold Smithson,
Chico, Cal.; Brown Radio Service & Laboratory (Cordon P. Brown,
owner) ; Rochester, N. Y. ; Guthrie Broadcasting Co. , Guthrie, Okla. ;
Joseph H. Hallock, Baker, Oregon; Guilford Broadcasting Co.,
Abilene, Texas; Raymond L. Hughes, Midland, Texas; W. C. Hilgedick
& Geo. C. Knaur, Denison, Texas; T. H. Barton, El Dorado, Arkansas;
W. L. Gleeson, Salinas, Calif; A. H. Sconberg, Salinas, Cal.;
Palmer Broadcasting Syndicate, Inc., Portland, Maine; Palmer
Broadcasting Syndicate, Inc. , Cheyennes, Wyo. ; Willis T. Shaugh-
nessy, Bay Shore, N. Y. ; Great Western Broadcasting Association,
Inc. , Provo, Utah; Louis H. Callister, Provo, Utah and Paul Q,.
Callister, Salt Lake City, Utah.
Letting down the bars on the 100 watt stations is a
reversal of governmental rE^.dio policy. Heretofore every effort has
been made to reduce the number of stations rather than to allow
them to be increased. When the Radio Commission was created
seven years ago, there were 734 stations on the air but there are
now only about 600.
There is also the political angle with regard to the
100-watt stations. All of the Communications Commissioners have
to be confirmed by the Senate when Congress meets. They will,
therefore, doubtless exercise great care in not offending anyone
who may have anything to do with their confirmation.
XXXXXXXXXX
7
10/12/34
RESTRICTIONS FOR OFFICER OF MORE THAN ONE CARRIER
An order of authorization to hold the positions of
officer or director of more than one carrier will require him to
first file voluminous information with the Federal Communications
Commission. He must specify every carrier in which he holds
stock, bonds, or notes, individually, as trustee, or otherwise;
and the amount of, and accurately describe the securities owned
or held by him, of each carrier for which he seeks authority to
act. Whenever it is contemplated that the applicant will represent
on the Board of Directors of any carrier securities other than
those owned by him, the application shall describe such securities,
state the character of representation, the name of the beneficial
owner or owners, and the general nature of the business conducted
by such owner or owners.
The applicant must specify each and every position with
any carrier which he now holds and seeks authority to hold. As to
each carrier, he must tell as to whether it is an operating carrier,
a lessor company or any other corporation subject to the Communica¬
tions Act. He must make a statement relative to any carrier which
does not make reports to the Commission and give full information
as to the relationship, operating financial, competitive, or other¬
wise, existing between the carriers covered by the requested
authorization.
Furthermore each applicant must state the following:
Every business corporation - industrial, financial, or
other - of which the applicant is an officer or director, trustee,
receiver, attorney or agent, or in which the applicant has a
financial interest, the general character of the business conducted
by such corporation, and the amount and a description of the
applicant's interest.
Whether or not, since August 18, 1934, the applicant has,
as director or officer of any carrier subject to the Act, received
for his own benefit, directly or indirectly, any money or thing of
value in respect of negotiation, hypothecation, or sale of any
securities issuedbr to be issued by such carrier, or has shared
in any of the proceeds thereof, or has participated in the making
or paying of any dividends of such carrier from any funds properly
included in capital account. If the answer to this question is
in the affirmative, state the amount or amounts received by the
applicant from such transaction or transactions, and the reasons
to justify such payment or payments.
X X X X X X X X
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ARGENTINA TUBE FACTORY DIRECTED BY AMERICAN
With an initial paid in capital of 150,000 paper pesos
(about $45,000) and an authorized capital of 1,000,000 paper pesos,
a group of local radio importers and dealers has constructed a
factory in Buenos Aires for the manufacture of radio tubes. This
factory is under the personal direction of an American expert.
In effect, the factory is merely an assembling plant for
radio tubes, as all component parts are brought from the United
States. Production has now reached an average of 500 tubes a day.
With the equipment now installed, a production of 1,000 tubes a
day is anticipated, but more machines have been ordered and an
ultimate production of 2,500 tubes a day is envisaged.
Much of the anticipated profit from this venture is be¬
ing lost in the Argentine customs duties. Argentine customs
regulations are so complicated that it is frequently impossible
to ascertain in advance the amount of the duty that will be charg¬
ed on a given product. The founders of the new tube manufacturing
organization calculated that the component parts for the tubes
would be classified as raw materials and assessed duties as such.
In practice, however, the supplies have been taxed as fully manu¬
factured articles, thus creating a difference which has wiped out
a large part of the anticipated advantages of local production.
The full name of the new organization is the Sociedad
Anonima Industrial Radiotelefonia Argentina, and the address of
the factory is 4154 Hondurar, Buenos Aires.
XXXXXXXX
BLAMES RADIO FOR SONG INCOME LOSS
In connection with the new agreement reached for an
increase of rate with the 12,000 motion picture theatres, Gene
Buck, President of the American Society of Composers, said that
during the last few years the income of music writers had fallen
off almost 70 percent.
"The radio is chiefly responsible and the depression
has been a factor", Mr. Buck declared. "A popular song hit used
to sell as many as 3,000,000 copies in sheet music. Now a writer
is lucky if even 300,000 are sold. Pianos are closed from Maine
to California. Radio has killed off most of the phonograph record
profits, too, so our only solution was to get a higher share of
revenue from the chief profit-makers from music, the motion-
picture theatres, "
Under the new agreement, all theatres with a seating
capacity of 800 or less, regardless of admission price, must pay
a fee of 8 cents a year for each seat in the theatre. Theatres
with capacities of 801 to 1,599 seats must pay at the rate of
15 cents a seat a year, and those of 1,600 seats or more at the
rate of 20 cents a seat a year,
XXXXXXXX
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10/12/34
APPLICATIONS GRANTED BY BROADCAST DIVISION, FCC
WHJB, Pittsburgh Radio Supply House, Greensburgh, Pa. ,
modification of C.P. approving transmitter and studio location in
Greensburgh; extending commencement date to Oct. 29, 1934, and
completion date to 60 days thereafter; WRAX, WRAX Broadcasting
Co., Philadelphia, Pa., license to cover C.P. for auxiliary trans¬
mitter, 920 kc. , 250 watts; WPEN, Win. Penn Broadcasting Co. &
WRAX, license to cover C.P. for a period of 90 days conditionally
as to WPEN, 920 kc. , 250 w. night, 500 w LS, stations to share
time; WKBZ, Karl L. Ashbacker, Muskegon, Mich. , license to cover
C. P. , 1500 kc. , 100 watts, unlimited time; WCRW, Clinton R. White,
Chicago, Ill., license to cover C.P. , 1200 kc. , 100 watts, speci¬
fied hours; WMAL, National Broadcasting Co., Inc., Washington,
D. C. , modification of license to change main transmitter to
auxiliary and change auxiliary to main transmitter; WKRC , WKRC,
Inc., Cincinnati, Ohio, amendment of Sec. 2 of Extension of
special temporary experimental authorization, dated August 7,1934,
as follows: North Tower 7.6 amperes; South Tower 4.5 amperes;
the current in North tower leads the current in South tower by 120°.
Also, W XYZ, Kunsky Trendle Broadcasting Corp. , Detroit,
Mich. , authority to transmit programs from WXYZ to stations of
the Canadian Radio Commission; WTBO , Association Broadcasting
Corp., Cumberland, Md. , license to cover C.P. 800 kc. , 250 watts,
daytime; WFBC , The Greenville News-Piedmont Co., Greenville, S.C.,
modification of license to increase night power from 250 w. to
1 KW; KFJM, University of North Dakota, Grand Forks, N. Dai.,
special experimental authorization to change equipment and in¬
crease day power from 100 w. to 250 watts experimentally; WHEF ,
Attala Broadcasting Corp. , Kosciusko, Miss. , license to cover C.P.
1500 kc. , 100 watts, 250 w. LS, unlimited; KMED » Mrs. W, J. Virgin
Medford, Ore., license to cover C.P. 1310 kc. , 100 w. , 250 w. LS,
unlimited time; WJIM, Capitol City Broadcasting Co. , Lansing,
Mich., license to cover C.P. 1210 kc. , 100 w. night, 250 w, day,
unlimited time; WKJC, Lancaster Broadcasting Service, Inc.,
Lancaster, Pa., license to cover C.P. 1200 kc. , 100 w. night, 250
w. day, share WKBC.
Also, WCAO, The Monumental Radio Co. , Baltimore, Md. ,
KGNF, Great Plains Broadcasting Co., N, Platte, Neb., WNYC, City of
New York, Dept, of Plant & Structures, New York City; WSFA,
Montgomery Broadcasting Co. , Inc. , Montgomery, Ala. , WNAD, Univer¬
sity of Oklahoma, Norman, Okla. - all modification of license to
increase day power from 500 w. to 1 KW; WJBX, James F. Hopkins,
Inc. , WMBC, Havens & Martin, Inc. , Richmond, Va. , WJW, WJW, Inc. ,
Akron, Ohio, WLVA, Lynchburg Broadcasting Corp. , Lynchburg, Va. ,
MPAK, WRAK, Inc., Williamsport, Pa., C.P.s to make changes in
equipment, increase pov/er from 100 w. to 100 mr, night, 250 w. day.
'll ALA, Pape Broadcasting Corp., Inc., Mobile, Ala., modification of
license to increase day power from 500 w. to 1 KW; KGER, Consoli¬
dated Broadcasting Corp. , Ltd. , Long Beach, Cal. , license to cover
C.P. 1360 kc. , 1 KW, unlimited; KRXO, Lee E. Mudgett, Everett,
Wash., C.P, to move locally to 1804 Hewitt Ave. , same city, 1370 kc,
50 w. S--KVL.
10 -
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10/12/34
Also, WBNS . WBNS, Inc. , Colurabis, Ohio, WFBR . The
Baltimore Radio Show, Inc., Baltimore, Md. , KWK , Thomas Patrick,
Inc. , St. Louis, Mo. , WGAR, WGAR Broadcasting Co. , Cleveland, Ohio,
all granted authority to determine operating power by direct
measurement; WLBZ . Maine Broadcasting Co. , Inc. , Bangor, Me. ,
C.P. to make changes in equipment and increase day power from
500 w. to 1 KW ; WNBX , WNBX Broadcasting Corp. , Springfield, Vt. ,
C.P. to make changes in equipment, increase power from 500 w. to
1 KW, and increase hours of operation from daytime to daytime to
sunset at Erie, Pa.; KGRS, Gish Radio Service, Amarillo, Texas,
C.P. to make changes in equipment and increase daytime power
from 1 KW to KW; WFEA, New Hampshire Broadcasting Co. , Man¬
chester, N. H. , C.P. to increase day power from 500 w. to 1 KW. ;
New, Aberdeen Broadcast Co. , Aberdeen, S. Dak. , C.P. for new
station to operate on 1420 kc. , 100 watts, full daytime hours;
New, Richard Austin Dunles, Wilmington, N. C. , C.P. for new sta¬
tion to operate on 1370 kc. , 100 watts, daytime.
Also, WBTM , Piedmont Broadcasting Corp. , Danville, Va. ,
WIBM, WIBM, Inc. , Jackson, Mich. , KIT , Carl E. Hamond, Yakima,
Wash. , KFXJ, Western Slope Broadcasting Co. , Grand Junction, Colo. ,
C.P. to make changes in equipment and increase power from 100 w. to
100 w. night, 250 w. day; KQ05 , H. H. Hanseth, Inc. , Marshfield,
Ore., C.P. to make changes in equipment, change frequency from
1370 to 1200 kc. , and increase power from 100 w. to 250 w. daytime
hours; New, E.J. Regan & F. Arthur Bostwick, d/b as Regan &
Bostwick, St. Albans, Vt. , C,pc (experimental) 406000 kc. , 5 watts;
New, National Broadcasting Co. , Inc. , Portable-Mobile (New York
City)- C.P. ( Exp. -Gen. Exp. ) 17310, 23100, 25700, 26000, 27100,
31100, 34600, 37600, 40600, 86000-= 400000 , 401000 kc. , 15 watts;
also granted license covering same; W10XDT , Associated Radiocast¬
ing Corp., Portable-Mobile ( Columbus, 0. ) , license (Exp. -Gen. Exp.)
31100, 34600, 37600, 40600 kc. , 15 watts, for period ending June
1, 1935; W3XAI , RCA Victor Co., Inc., Camden, N. J. , modification
of C.P. extending completion date to March 15, 1935; New, Clarion
Broadcasting Co., Inc., Clarion, Pa. (Action taken Sept. 11),
application for new station to operate on 850 kc. , with 250 watts
daytime hours, heretofore designated for hearing, was reconsidered
and granted.
XXXXXXXX
500,000 WATT TRIPLETS UNKNOWN TO COMMISSION
No confirmation could be secured at the Federal Communi¬
cations Commission that Columbia expected to promote the erection
of three 500,000 watt stations, in the Middle West, the Southwest,
and on the Pacific Coast.
Neither would anyone at the Commission comment upon the
report that Hearst had offered $1,500,000 for the purchase of
Station WENR, in Chicago.
XXXXXXXX
11
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W SMB- WAD C FIELD INTENSITY SURVEY RECOMMENDED
In connection with Station T/7SMB, of New Orleans, in¬
creasing its power from 500 watts to 1,000 watts, which has been
objected to by Station WADC, of Akron, Ralph H, Walker, Examiner
for the Federal Communications Commission, has recommended:
1, That the Commission, before taking final action on the
application, require the parties to conduct a field intensity sur¬
vey of such a character as will enable the Commission to determine
just what interference will result from the use of one kilowatt
power by Station WSMB; or,
2. That the Commission affirm its grant upon the condition
that the signal strength of WSMB in the Akron area shall not
exceed that which would be normally expected from a 500 watt
station using a conventional type antenna.
In his conclusions in the case, Examiner Walker says:
"If during a period of measurements recently made, assum¬
ing them to be correct, Station WSMB was actually using 500 watts
power, then the use of one kilowatt power would probably seriously
curtail the present good service area of WADC. On the other hand,
if the antenna system of Station WSMB is such that the effective
strength of that station in the direction of Akron with one kilo¬
watt power would be equivalent to the effect from a 200 to 500
watt station using a conventional type of antenna, there would be
no substantial restriction in the service area of WADC. "
John M. Littlepage and Thomas P. Littlepage, Jr. ,
appeared in behalf of WSMB, and Donald G-ottwalh for WADC.
X X X X X X X X
AMERICAN RADIO SETS POPULAR IN FRANCE
Approximately 40 percent of the radio sets sold in
France are of American make, according to a report to the Commerce
Department from Assistant Trade Commissioner Lestrade Brown, Paris.
French buyers, he points out, feel that in an American set they
are getting full value for their money and moreover American
radios are equipped with American tubes which are by far the most
popular in France.
French manufacturers of radio sets, the report states,
now feel that they can compete in price and technical performance
with any foreign set and believe they are getting a better grasp
on their home market. They are of the opinion that the sets now
built in France are decidedly more selective than those imported.
This, of course, is due to the long training they have had because,
at the beginning, French broadcasting was acknowledged to be far
behind other countries in Europe and purchasers of French sets
demanded, therefore, that such sets should tune in any of the
better European broadcasting stations.
XXXXXXXX
- 12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL- Not for Publication
INDEX TO ISSUE OF OCTOBER 16, 1934.
Commercial Broadcasters Counter Strongly At Federal Hearing. ... 2
A. B.S. Displays Showmanship In Dedication Program . 5
Senator and Farley Battle Over Radio-Press Censorship . 7
Radio Manufacturers' Code Delayed By Johnson Resignation . 8
R.M.A. Board Meets In New York Thursday . 8
McClelland Suicide Laid To Business Worry.,.* . 9
Zenith Reports Operating Deficit . . 10
Broadcasters1 Code Meeting Postponed . . . 10
No Additional Charge For Mutual System Transmission Lines. **..11
WKZO, Kalamazoo Night Time Request Favorably Reported . 11
Opera Broadcast Probably Upwards Of $375,000 . 11
Applications Granted By Broadcast Division, FCC . 12
No. 766
■
"
October 16, 1934.
COMMERCIAL BROADCASTERS COUNTER STRONGLY AT FEDERAL HEARING
A most thorough and vigorous presentation of what com¬
mercial broadcasters are doing in behalf of educational and reli¬
gious programs continues in Washington where the Federal Communica¬
tions is gathering evidence to use in its recommendation as to
whether or not Congress shall set aside a definite percent of the
broadcasting privileges for this type of program. When the commer¬
cial broadcasters have finished their witnesses, directed by Philip
G. Loucks, Managing Director of the National Association of Broad¬
casters, and Henry A. Bellows, Chairman of the Legislative Committee
will have occupied more than a week testifying. It is perhaps the
greatest fight the industry has ever made in its history.
A statement read by Mr. Bellows from Station WSMB, a
commercial station in New Orleans, was to the effect that in New
Orleans "the so-called religious station puts on less religion
and education than WSMB. " A statement from WWAE, Hammond, Ind. ,
presented by Mr. Bellows, set forth that the Methodist group, "the
largest Protestant group in America", abandoned the hope of owning
and operating their own stations for the following reasons:
"If the Methodist group demanded this privilege of broad¬
casting assignments every other denominational group, of which
there are many, should rightfully have the same privilege. It
would be impossible to grant to every group the same privileges
because there wouldn't be enough channels to go around. The
Methodist group decided they would not ask for anything for them¬
selves that could not reasonably be granted every other group.
"The Catholic or Baptist group would not use a Methodist
medium of publicity. Neither would a Methodist use that of a
Catholic or any other group. It is simply not done. The same is
true of educations.! institutions.
"The cost is tpo great and the service too restrictive
when it is merely an institutional organ. "
A picture of the operation of small radio stations in
cities of 125,000 and less population in respect to their education¬
al, religious and similar programs was given by Isaac Z. Buckwolter,
of WGAL, Lancaster, Pa. , a 100 watt station. Mr. Buckwolter cited
his own station, which he said devoted 24 percent of its time to
this type of program during the first six months of 1934, a total
of 156 hours.
Mr. Buckwolter named as typical four small stations in
Pennsylvania. They are on the average giving approximately 20 per¬
cent of their time in the interest of educational and other public
service broadcasts.
2
10/16/34
Paul Shipman Andrews, Dean of the Law School of Syracuse
University, said that no form of radio censorship had ever been
exercised by the University. They have more time at their dis¬
posal right now than they possibly can use, Kenneth 3. Bartlett,
Director of the Syracuse University broadcasting station WSYR,
declared.
"We have all the evening time that we can use", Ur.
Bartlett continued, "and are perfectly satisfied as far as the
evening arrangement is concerned.
Mr. Bartlett explained that most manuscripts for broad¬
casting are sent to his office about a week before the broadcast.
If there is anything of a controversial nature in it they seek to
find someone who will take the opposite side of the case and if
so, offer him the same amount of time.
Station WCAE, Pittsburgh, has been most generous to the
Carnegie Institute of Pittsburgh, Samuel Harden Church, president
of that organization told the Commission.
Educational programs which come over the networks have •
done more than any other series which has been produced to make the
national conscious of the benefits of education by radio, Ben G.
Graham, Superintendent of the Pittsburgh Schools asserted. He
also praised the local programs heard through WCAE.
Educational broadcasts can receive such time and be of
such a nature as educational interests themselves 'would make them,
Will Earhart, Director of Music in the Pittsburgh Public Schools
said he believed from his experience with WCAE.
That they had definite evening time on WCAE, Pittsburgh,
and that they had not been moved to accommodate commercials was
the message from Mrs. Saul Levine, president of the Pittsburgh
Council of Parent Education.
There was also praise for the station by Rev. H. P.
Eckhart, pastor of St. Andrews Lutheran church, Pittsburgh. Rev.
Eckhart said he believed the public was better served by religious
broadcasts of complete services from church rather than by studio
broadcasts of religious services.
Commissioner Thad Brown asked Reverend Eckhart if many
contributions were received as a result of radio sermons. He
replied that in the beginning yes, but that for some years now, no.
Mr. Brown said that a Baptist minister in Columbus had told him
that he received a great many contributions. Reverend Eckhart
replied that for some years the radio collections have not been
one percent, but added that his church had never made any appeal.
Dr. Leo Creip, of the Allegheney Medical Society, and
Clarence A. Crooks of the American Legion, expressed satisfaction
with the Pittsburgh broadcasts. Experiences in putting the
Pittsburgh traffic court on the air were related by Niles Anderson
of the Better Traffic Committee.
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"Instead of the Magistrate warning one or two or ten
people who were before him, he reached the thousands of potential
violators in the community and considerably reduced the lack of
knowledge which caused the accidents", Mr. Anderson observed.
How their New York station cooperated in presenting
children's programs in order to educate the children to safety
observance and educational work of their other stations, was
described by Jesse L. Kaufman, business manager of the Hears t
Radio Interests. Fourteen percent of the operating time of
Station WOKO, Albany, is devoted to public service broadcasts
according to Harold Smith, Manager.
Station WCBM, Baltimore gives 65 percent daytime and
35 percent evening, or 14-g- percent of the total hours to educa¬
tional and religious programs, John Elmer, its director, affirmed,
as he added, "It is our policy to give either day or night hours
with equal readiness. "
Unless our educational broadcasts of all types were
kept within short spaces of time, as well as being closely pre¬
ceded and followed by sparkling entertainment, they would not
meet with the reception they now enjoy, Credo H. Harris, Director
of Station WHAS, Louisville, observed.
Along the same line, Paul Ourv, of Station WPRO, Provi¬
dence, remarked: "I do not believe that this type of program is
popular with the great masses of listeners unless it is endowed
with the dressing up or showmanship to go ordinarily with com¬
mercial types of program. •
"In most cases these sponsors do not have enough know¬
ledge of broadcasting to make a program interesting if the
ordinary system of schoolroom or pulpit methods are used. "
It has been the observation of the Buffalo Broadcasting
Corporation that programs of the type under consideration by the
Commission usually have a relatively small audience and that many
of these services, such as religious broadcasts, have a distinctly
class following which represents a very small part of the general
audience, I. R. Lounsberry, of Buffalo testified, and added:
"Only in rare instances have listeners of their own
initiative asked for more programs of such a nature. This compc.ny
has endeavored to interest educational institutions in presenting
programs but in spite of the fact that such offers have been
relatively frequent and made over a long period of time, there
has been a general lack of interest on the part of educators. "
Radio stations are not managed by men of inferior type,
as claimed by Bruce Bleven, editor of the New Republic , Arthur
B. Church, of KMBC, Kansas City, said.
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10/16/34
"Certainly Mr. Bleven has not come in personal contact
with very many representative station managers", Mr. Church
observed. The witness said that he had been interested in the
possibilities of developing informative and educational features
and it seemed strange to him that advertisers have not demanded
for sponsorship more of this type of program.
Waldo Abbott, director of broadcasting, of the University
of Michigan, expressed the wish that some bureau or department of
the government might gather broadcasting information from all
educational institutions and tabulate it in such a way that
universities might know what the others are doing.
XXXXXXXX
A, B . S, DISPLAYS SHOWMANSHIP IN DEDICATION PROGRAM
The dedication of the American Broadcasting System Sunday
night was unique in that, instead of someone reading telegrams of
congratulations, a monotonous procedure at best, the messages
were presented _hy^-electri cal transcription and the voices of the
speakers themselves were heard. Some of the recores were run
a trifle too fast but at that very likely a large proportion of
the radio audience believed they were actually hearing the dis¬
tinguished speakers.
Altogether the presentation was effective, especially
so because of the good showmanship exercised throughout and the
brevity of the ceremonies. Including more than 25 Governors and
Mayors and others heard via transcription and three speakers "in
person", Postmaster General Farley, Herbert L. Pettey, Secretary
of the Federal Communications Commission, and Hampson Gary, of
the Broadcast Division of the FCC, the entire affair lasted only
35 minutes with the listener’s attention well held for the entire
period and the show finishing in plenty of time for him to pick up
Will Rogers or Walter Winchell, if he so desired.
Those who extended congratulations to A. B.S. and George
B. Storer, its president, by means of transcription, included
Governor Lehman, of New York, Mayor LaGuardia, of New York City,
Mayor Jackson, of Baltimore; Mayor Zimmerman, of Buffalo; Mayor
Kelly, of Chicago; Governor White, of Ohio; Lieut. Gov. Sawyer,
of Ohio; Representatives Hollister and Hess, of Ohio; Mayor
Wilson, of Cincinnati; A. L. Ashby, Vice-President of the National
Broadcasting Company; Mayor Couzens, of Detroit; Mayor Moore, of
Philadelphia; Governor Green of Rhode Island; Mayor Dunn, of
Providence; Mayor McNair, of Pittsburgh; Governor Park, of
Missouri; Senator -Clark, of Missouri; Mayor Dickman, of St. Louis;
Mayor LeBar, of Trenton; Mayor Hayes, of Waterbury; Mayor Spear, ..
of Wilmington; L. B. Wilson, of WCKY; and Governor Horner, of
Illinois.
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Postmaster General Farley, speaking from New York, said:
"Radio is playing a most important part in the present
campaign and our people have a more accurate understanding of
governmental problems than ever in the history of the nation.
Misinformation is rapidly dissipated.
"It is common knowledge that radio has revolutionized
political campaigns. Millions may now be reached, compared with
thousands of former days.
"Candidates a few years ago made the v^elkin ring by mis¬
leading facts and statements. Now it is comparatively easy to
reach the whole electorate and to present the issues in a calm
and dispassionate manner. Once the American people are in pos¬
session of all the facts the verdict will always be fair and just."
Commissioner Gary, speaking from Washington was intro¬
duced by Mr. Pettey, the first time the latter has been heard over
the radio since becoming secretary of the Commission.
"Radio is one of the marvels of all time", Mr. G-ary
said. "Merely an idea sometime ago it is now taken for granted
along with the telephone and the movie. Government officials,
statesmen and political candidates can address the whole people
directly by radio. "
Speaking of censorship, Mr. Gary said listeners exercised
their own censorship. "If not satisfied, they turn the dial and
consign the program to oblivion. "
"I am informed that there are 18,000,000 receiving sets
in more or less regular operation and that they are installed in
three out of every five homes in the United States", the Commis¬
sioner concluded.
"Through this comparatively new medium of communication,
our country is being now firmly welded into a homogeneous whole.
"At best we can only regard radio as a husky youth, with
a pleasing adolescent voice. Tomorrow it will become a full grown
man, with eyes that see as well as ears that hear. I will not
venture to predict when television will emerge, but it is an
experiment that holds more than mere hope. It is a definite
promise of the future. "
XXXXXXXX
6
10/16/34
SENATOR AND FARLEY BATTLE OVER RADIO-PRESS CENSORSHIP
Although the White House recently announced that it had
washed its hands of Senator Schall, Republican, the latter has
reiterated his charges of radio press censorship. Taking up the
cudgel, Postmaster General Farley, at the dedication of the
American Broadcasting System, declared:
"All this talk about the Administration establishing a
censorship of radio and press in order to perpetuate its existence
is only the cry of desperation on the part of a weak and dis¬
credited minority - which is growing more impotent daily. There
is no desire or intention on the part of anyone in authority to
establish any kind of censorship of the press or radio.
"And the charge that plans are about to set up a Govern¬
ment controlled news agency to disseminate propaganda via radio
is equally absurd and groundless."
The accusation made by Senator Schall follows:
"Switching its plan to operate a Federal censored tele¬
graph service to compete with the Associated Press, the Hearst
News Services and the United Press from the appointment of Senator
Clarence C. Dill to the post now held by Hampson Gary on the
Communications Commission, the Roosevelt Administration has decid¬
ed it will be more workable to have the matter handled by a
private corporation. With Senator Dill as the head of the news
gathering syndicate, it will thus have the man who drew the legis¬
lation creating the Communications Commission as its sponsor.
Also, the new corporation will be in a position to borrow tax¬
payers' money from the PWA. In this manner it can be financed
by the government and still assume to be a private undertaking.
"Arrangements are now being made to purchase radio
receivers similar to the teletypes now in use by the wire services.
The censored news service will have the inside track on all govern¬
ment news and will be available to all newspapers willing to
print news colored to the satisfaction of President Roosevelt.
Plans are now being made to join all foreign radio stations in
the new service so that the Roosevelt News Service will have full
coverage of all foreign events.
"In cities where daily newspapers do not publish news
matter which endorses the New Deal in every particular, wealthy
citizens may.be encouraged to start new daily newspapers. They
will be offered this domestic and foreign news service. The
Roosevelt Administration in this fashion will have a club over
the publisher of every daily newspaper and the editors will have
to exert the utmost care to see to it that nothing exposing the
failures of Roosevelt gets into their papers. Secretaries Wallace
and Tugwell are said to have had a large part in working out this
new plan to censor the press by this new 'clubr."
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Senator Schall had previously charged that radio sta¬
tions in response to Senator Dill's letter concerning "the *
establishment of a new Federal censored press service" had offer¬
ed to subscribe $500,000.
"This new news service will give Mr. Roosevelt a better
grip on the newspapers of the United States than he contemplated
by the passage of his press censorship bill or by the newspaper
code of the NRA before it was amended permitting the right of free
press", the Senator added.
"If, according to Dean Ackerman of the Columbia University,
Germany has put out of business over 1000 newspapers by this form
of censorship, how many will Roosevelt destroy in the United
States? "
XXXXXXXX
RADIO MANUFACTURERS' CODE DELAYED BY JOHNSON RESIGNATION
A decision in the matter of whether or not there shall be
a separate code for the radio manufacturers may be delayed for
several months because of the resignation of General Johnson.
"Whether it will be that long or not, I don't know, but in
any case, there will be considerable delay", one in touch with the
situation said. "With General Johnson's leaving everything at the
NRA is at a complete standstill. The place is like a morgue.
"It all awaits reorganization by Richberg. I feel that
the. industry has less to worry about in him than in Johnson. I
believe he realizes his responsibilities and that he is as good an
organizer as Johnson and there may be some hope in his accession.
XXXXXXXX
R. M. A. BOARD MEETS IN NEW YORK THURSDAY
Bond Geddes, Executive Vice~Pr4sident of the Radio Manu¬
facturers' Association, is leaving 'Washington today to attend a meet-*
ing of the R. M.A. Board of Directors which will be held in New York
Thursday.
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McClelland suicide laid to business worry
Funeral services for George F. McClelland, former Vice-
President of the National Broadcasting Company, who committed
suicide last Friday were held Monday morning at St. Agnes Church,
43rd Street and Lexington Avenue, New York City. They were
attended by representatives of the radio industry and the Veteran
Association of the Seventy-first Regiment.
Mr. McClelland's tragic act was attributed to his fail¬
ure to organize a broadcasting chain. A pencilled note was left
by him to his secretary but much of it was illegible because of
bloodstains. However, the conclusion reached by Dr. Robert C.
Fisher, Assistant Medical Examiner was that the suicide was
caused by worry over business troubles.
For the purposes of incorporation, he registered his
organization, which he formed when he left the NBC, as the
Broadcasting Stations Corporation but subsequently expected to
change the name. At one time or another large interests were
reported to be backing the network, among them a moving picture
concern.
It was finally said that a definite announcement with
regard to the new network would be made early in October. Instead
there came the news of his death. Mr. McClelland shot himself
through the head while seated at the desk in his office at 21
East Fortieth Street, New York City. That he should have ended
his life in such a manner was especially hard for his many friends
to realize because he was of apparently such a uniformly cheer¬
ful disposition.
Adding to the tragedy was the fact that he leaves a
widow and two children. Although he looked considerably older,
he was only 39 years old. At that Mr. McClelland, or "Mac", as
he was generally called, was a pioneer in commercial broadcasting
and known to practically everyone in the industry.
McClelland, along with W. E. Harkness, played a large
part in the development of Station WEAF, then owned by the Ameri¬
can Telephone and Telegraph Company. By some he was given credit
of having originated the idea of broadcast advertising. At any
rate, he was among the very first to apply the idea. Also among
the first to link stations together in a network. Incidentally,
¥r. McClelland always had an aversion to the word "chain".
Please call it a network of stations", he once said to this
writer. 'Chain' has a sinister sound."
When the National Broadcasting Company was formed and
bought WEAF, Mr. Harkness elected to remain with the A. T. & T.
but Mr. McClelland and G-. W. Johnstone, then also with WEAF, and
at present in charge of the NBC press bureau, elected to go with
the latter organization. This was in 1926, a year before the
Federal Radio Commission was created. Mr. McClelland was made
Manager of WEAF and Vice-President of the National Broadcasting
Company which position he held until a year or so ago when he
left the NBC to form his own company.
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10/16/34
ZENITH REPORTS OPERATING- DEFICIT
Zenith Radio Corporation reports an operating deficit
for the quarter ended July 31, 1934, of $36,573.19 after all
charge-offs, including liberal reserves for depreciation and taxes.
Manufacturing Profit
After Excise Taxes, Royalties, Manu¬
facturing Expenses and Maintenance
of Plant and Equipment $37,910.94
Selling and Administrative Expenses
Depreciation
Operating Deficit
56,090.34
18,393.79
$36,573.19
"The Company, which pioneered short-wave development,
is marketing a complete new line of receivers covering all wave
bands and incorporating many new features including Split Second
Tuning and Triple Filtering. Deliveries were retarded during
the quarter reported because of general conditions, but there
has since been a substantial improvement resulting in a profit
for the month of August", Hugh Robertson, Vice-President and
Treasurer reports.
"A 25-tube DeLuxe High Fidelity five wave band
receiver of advanced design, listing at $750.00 has been announc
ed to the trade and will be ready for delivery shortly. The
usual conservative policy of limiting production and expenses
to immediate sales possibilities is being continued. Current
obligations are being met promptly when due."
XXXXXXXX
BROADCASTERS' CODE MEETING POSTPONED
James W. Baldwin, Executive Officer of the Broadcasting
Industry Code has advised that the Broadcasters' Code meeting
has been postponed to Thursday, October 25th. It will be hold
in Washington.
XXXXXXXXX
10
» ‘
IA
10/16/34
NO ADDITIONAL CHARGE FOR MUTUAL SYSTEM TRANSMISSION LINES
Each, station of the newly organized Mutual Broadcast¬
ing System, including WGN, Chicago, WOP, Newark, WLW, Cincinnati,
and WXYZ, Detroit, will receive its card rates for time, less
agency commission, making no additional charge to the advertiser
for transmission lines, W. E. Macfarlane, President of the
System said. Mr. Macfarlane, who is Vice-President of WGN, and
Chicago Tribune Business Manager added:
"The name clearly describes our plan of operation.
Through this new organization we will endeavor to make suitable
time arrangements for advertisers seeking to broadcast in
important markets through the use of a few stations having high
power and a vast listening audience. We are thinking in terms
of markets and their importance.
"Our plan will develop in some measure according to
the demand of advertisers. Each station will remain independent
and make its own decision in accepting programs. Thus we
believe we have established a truly mutual arrangement between
a group of independently owned stations.
"Several programs are now broadcast over this group of
stations by mutual agreement. "
X X X X X X X
WKZO, KALAMAZOO NIGHT TIME REQUEST FAVORABLY REPORTED
Examiner George H. Hill has recommended that a construc¬
tion permit be granted to Station WKZO, Kalamazoo. The station
had made application to move its transmitter locally, install
directional antenna for use at night, and increase the operating
hours from daytime only with 1000 watts power, to unlimited
time with power of 250 watts at night and 1000 watts day.
The application was granted without a hearing but
later was reconsidered upon protests from Stations WOW, Omaha,
and WEEI, Boston, following which the hearing, at which Mr.
Walker sat, was held.
XXXXXXXXXXX
OPERA BROADCAST PROBABLY UPWARDS OF $375,000
It is estimated that the broadcasts of the Metropolitan
Opera, which are to resume December 24th, will cost at least the
amount paid last year, $375,000, maybe more.
X X X X X X
11
•' • ■
10/16/34
APPLICATIONS GRANTED BY BROADCAST DIVISION, FCC
New ~ William J. Sanders, New Britain, Conn. , C.P. for
new station to operate on 1380 kc. , 250 watts, daytime hours;
New, Head of the Lakes Broadcasting Co., Hibbing, Minn., C.P. for
new station to operate on 1210 kc. watts, unlimited time; KPAC ,
Port Arthur College, Port Arthur, Tex. , license covering move of
station from Brownsville to Port Arthur, Texas, and changing
hours of operation from sharing with KRGV to daytime on 1260
kc. , 500 watts, subject to decision of Court of Appeals in re
case of Magnolia Petroleum Co. vs, Sabine Broadcasting Co. ,
Inc. (KFDM), protesting the move of KPAC; WBBM, WBBM Broadcasting
Corp. , Chicago, Ill., modification of special experimental
authorization for synchronous operation with Station KFAB from
local sunset, Lincoln, Neb. to midnight; KFAB, KFAB Broadcasting
Co. , Lincoln, Neb. , modification of special experimental authoriz-
tion for synchronous operation with Station WBBM from local
sunset to midnight.
Also, WCPC, Araericus Broadcast Corp. , Albany, Ga. ,
modification of license to change hours from daytime to unlimited,
1420 kc. 100 watts; KGIR, KGIR, Inc. , Butte, Mont. , C.P, to
make changes in eaxuipment; increase day power from 1 KW to 2-g- KW;
WEED, William Avera Wynne, Rocky Mount, N. C. , modification of
license to change hours from daytime to unlimited day, sharing
with WEHC night, also to move studio locally; KOQS, H. H* Hanseth,
Inc. , Marshfield, Ore. , modification of license to change hours
of operation from daytime to daytime andfrom local sunset to
7 P.M. PST, months of September, October, November, December,
January, February and March, with 100 watts power; KSEI, Radio
Service Corp., Pocatello, Idaho, modification of C.P. to move
transmitter locally; move studio to Yellowstone-LL Highway,
employ directional antenna system, and extend commencement date to
within one day from this date and completion date to within 120
days hereafter, subject to decision of the Court of Appeals in
this case and to further order of the Commission thereon.
Miscellaneous
WQDM, A. J. St. Antoine & B. J. Regan, St. Albans, Vt. ,
application for C.P. to move station locally, heretofore granted,
was retired to closed files, for want of prosecution; WCFL,
Chicago Federation of Labor, Chicago, Ill., C.P. to install
auxiliary transmitter heretofore granted, was retired to closed
files as applicants advised construction has been abandoned;
WNOX, WNOX, Inc. , Knoxville, Tenn. , modification of license to
change frequency from 560 to 1010 kc. (The Broadcast Division on
July 18, 1934, suspended the action of June 15, 1934, in granting
the above application, affirmed its action of June 15 inasmuch as
on Sept. 25, 1934, the grant previously made to station WIS to
change its frequency from 1010 to 560 kc. , and increase power
from 500 w. night, 1 KW day, to 1 KW night, 2j? KW daytime, was
affirmed and the granting of WNOX's application was contingent
thereon.
XXXXXXXXX
- 12 -
t
Heinl Radio Business Letter
2400 CALIFORNIA STREET
TOPU Oi
WASHING JON, D. C. j_n ; ,
[Qj n /M o u
C O N F I D E N T I A L — Not for Publication ^ i
INDEX TO ISSUE OF OCTOBER 19, 1904*
Network Heads Hammer Congress Education Program Idea . 2
Trade Commission Gratified By Radio Industry Cooperation . 4
Large Attendance At McClelland Funeral . 5
Which Is America's Oldest Broadcasting Station? . 6
Germans Install Anti- Fading Aerials . 8
A. B. S. Adopts Printed Programs . 9
New Zealand Favors British Manufacturers . 9
One Antenna For Houseful Of Sets . 9
To Arbitrate RCA-Mackay China Dispute . .10
Why Radio City Doors Hard To Open. . 10
Dr. Pupin Disputed By DeForest . 11
Miscellaneous Decisions Of Communications Commission.. . 11
No. 767
.
NETWORK HEADS HAMMER CONGRESS EDUCATION PROGRAM IDEA
Two of the most effective witnesses for those opposed to
the proposition that Congress set aside a fixed proportion of
radio facilities for educational and religious programs were
William S, Paley, President of the Columbia Broadcasting System,
and M. H. Aylesworth, head of the National Broadcasting Company.
Establishment of non-profit educational radio stations
through facilities wrested from commercial broadcasters would con¬
stitute a "needless duplication of facilities, at a needless cost
to the taxpayers", Mr. Payey told the Federal Communications Com¬
mission. He analyzed the program service of his network, pointing
out that for the first nine months of this year more than two-
thirds of those programs were sustaining or non-commercial features.
Mr, Aylesworth stated that the National and other broad¬
casting companies and radio stations in their desire to cooperate
with educators had been guilty of offering too much time on the
air for education.
"The educators have not yet been able to grasp the show¬
manship in radio broadcasting", Mr. Aylesworth said. He suggested
joint planning under direction of the educators with the aid of
those who know the showmanship of broadcasting. "People do not
want to be educated", he continued. "They want entertainment.
Education on the radio can be made entertaining, and if it isn’t
the radio audience will turn to other radio programs. It would
be too bad to destroy the great force of radio education because
of monotony and poor showmanship. "
"I am personally loath to believe", said Mr. Paley, who
was the first of the two network chiefs to testify, "that any
legislative mandate could assist in the attainment of goals that
we are already working toward so wholeheartedly; nor would it
seem that legislative direction would make any easier the creative
work in an industry where the creative spark is so vital to the
performance of almost every moment's task. * * * To destroy what
has been built, or seriously to limit its usefulness - to weaken
radio’s economic structure - to attempt to widen the service the
public is receiving by substracting from that service, or to lessen
radio facilities so as to make unavailable to any portion of our
people the broadcasts they now receive - would seem to us a cause
of real regret. "
Mr. Paley said that in no other country has broadcasting
reached the development it has achieved here. More and more time,
he declared, is being devoted to educational and cultural programs,
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10/19/34
with 26 per cent of Columbia's sustaining hours during the first
nine months of this year given over to that type of rendition.
A half dozen other witnesses for Columbia appeared dur¬
ing the day's hearings. Frederick A. Willis, Executive Office,
Columbia Broadcasting System, described various sustaining
features such as the American School of the Air and the Church of
the Air, which are regularly broadcast without charge. Time
devoted to educational, religious and cultural programs for the
first six months of the year amounted to 521-1/2 hours or 18 per
cent of all broadcasting time of the network, he brought out.
John J. Karol, Director of Research of Columbia,
enumerated the character and nature of educational and cultural
programs broadcast over the seven stations owned or operated by
Columbia.. These he identified as WBT, Charlotte; KMOX, St. Louis;
WKRC, Cincinnati; WBBM, Chicago; WPG-, Atlantic City; WCCO, Minne¬
apolis, and WJSV, Washington, D. C. Some 24 per cent of the total
operating time of these stations, he said, is devoted to programs
definitely falling in the educational and informative sphere.
Listeners, as a general rule, he declared, do not want more
lectures, talks and similar programs, particularly during the
evening hours, when they desire to relax.
High tribute to the character of religious broadcasts
over the networks was paid by Dr. Morris Sheehy, assistant to
Rector James H. Ryan, of Catholic University.
Watson Davis, Director of Science Service, of Washington,
discussed the cooperative scientific broadcasts over Columbia
arranged through his organization, which he classified as educa¬
tional.
Cesar Saerchinger, Columbia representative in Europe,
who was instrumental in bringing many of Europe's crowned heads
and outstanding personalities to the international microphone for
broadcasts to this country, emphasized the importance of radio in
promoting international good-will.
There is great misunderstanding as to what constitutes
an educational program, Mr. Aylesworth declared when he took the
stand. He said that in his opinion "Amos 'n' Andy" constitute a
great educational force, in that they consistently inform the
people to brush their teeth twice a day and go to the dentist
twice a year. "That is very important education even if it is a
sponsored program", he asserted, declaring that many of the
nation's outstanding public health authorities harbor the same
view.
Mr. Aylesworth read into the record a letter from Walter
Damrosch who wrote that the real work of teaching young people how
to sing or how to play an instrument or how to compose, cannot be
done over the radio, but must be carried on by the local teacher
in the classroom who is in constant personal relation with his
pupils, who can correct their faults and examine them as to
their progress.
3
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10/19/34
A letter to Mr. Aylesworth from Dr. Nicholas Murray
Butler, of Columbia University, warned against any attempt of
direct control, management or official broadcasting by the Govern¬
ment. Surely, there are enough examples before us of what happens
when government attempts to control the life and the thought of a
people without putting our American neck in that noose”, Dr.
Butler wrote.
"I think the time has arrived when commercial radio
companies should not compete in education”, Mr. Aylesworth said.
"The time has come for concentrated planning of programs which
should be developed jointly. Today there is a deplorable condi¬
tion, with many of the educational programs so monotonous that
listeners say they do not want any education over the air. Our
guilt lies in having been too big-hearted in our desire to help
educators. ”
Mr. Aylesworth declared that television as a medium of
general public entertainment is still four or five years away.
Unlike the introduction of sound broadcasting, with the crude
cat's whisker sets, he said visual radio must be a perfect, fin¬
ished product when introduced. Moreover, he declared, it will
involve a new kind of programming, with expensive sets and
transmitting stations, and probably several hundred million
dollars of investment.
X X X X X X X
TRADE COMMISSION GRATIFIED BY RADIO INDUSTRY COOPERATION
Continuing its campaign for the elimination of false and
misleading advertising from radio broadcasts, the Federal Trade
Commission is making its second call upon broadcasting stations
to file copies of their advertising continuities with the Commis¬
sion, The call is for the submission of continuities to be pre¬
sented by radio between November 15 and November 30.
Because of the immense amount of work involved in read¬
ing and checking the advertising programs, the Commission has for
the present, at least, adopted the policy of making the call by
zones, of which the country has been divided into five. Today's
call is for continuities to be submitted by the stations in
Maine, New Hampshire, Vermont, Rhode Island, Connecticut, Massa¬
chusetts, New York, New Jersey, Delaware, Maryland, District of
Columbia and Puerto Rico. Calls upon the other four zones will
be made later.
In the Commission's letter making the call for the sub¬
mission of the advertising continuities, the fact is noted that on
the first call, made to cover broadcasts during the month of July,
the stations replied one hundred per cent, The Commission's
letter says that this is "a confirmation of our belief that the
radio industry would cooperate wholeheartedly with the Commission
4 -
; . - • f . * V
4
10/19/34
in its work of eliminating untruthful advertising from the air".
"The Commission feels that a promising start has been made and
that real progress has been achieved", the Commission statement
continues.
"With respect to the procedure as to electrical trans¬
cription of advertising matter, the Commission has made a modifica¬
tion to the extent that hereafter the Commission desires copies to
be furnished of all commercial announcements a.ppended to or given
in connection with a transcription, electrical or otherwise, where
such commercial programs are delivered or read by an announcer in
the local stations.
"In response to its first call, covering advertising
programs for the month of July, the Commission received 180,877
continuities. Of these, 161,466 were found to be subject to no
criticism and were filed without further action. The remaining
22,411 were referred for further examination. Of the ten network
systems and 598 broadcasting stations in the country, all filed
their continuities in compliance with the Commission's request,
while the continuities submitted by transcription companies repre¬
sent 95 per cent of the total volume of such advertising.
"The Commission is very much gratified at the coopera¬
tion furnished by the network systems, the stations and the
advertisers and is much encouraged over the progress made in
ridding radio advertising of false and misleading matter.
XXXXXXXX
LARGE ATTENDANCE AT MCCLELLAND FUNERAL
About 500 friends and associates paid tribute to the
late George F. McClelland, former Vice-President of the National
Broadcasting Company, by attending his funeral held last Monday
morning at St. Agnes Church in New York City.
Among those present were M. H. Aylesworth, President
of the National Broadcasting Company, Graham McNamee, G. W. John¬
stone, J. de Jara Almonte; in fact, all the old guard of NBC.
A1 so, W. E. Harkness of the American Telephone & Telegraph Company,
who started Station WEAF with "Mac".
XXXXXXXX
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10/19/34
WHICH IS AMERICA' S OLDEST BROADCASTING STATION?
by Robert D. He ini
As another anniversary of broadcasting approaches, the
question arises as to which was really the pioneer broadcasting
station in the United States. It is generally accepted to be
Station KDKA, which became the talk of the nation by its feat
of broadcasting the news of President Harding1 s election fourteen
years ago.
"After a period of testing and experimental operation,
the Westinghouse Company on November 2, 1920, put into operation
the first broadcasting station in the world, now known as KDKA,
and transmitted as its first program the returns of the Harding
presidential election", the late H. P. Davis, Vice-President of
Westinghouse, who was in charge of the broadcast, said describ¬
ing the historic event to students at Harvard University a
short time before his death.
"Following this, a daily program from 8:30 to 9:30 P.M.
was immediately instituted. The daily schedule of the station
has been continued without interruption up to the present time. "
Dr. Frank Conrad, an engineer, who is still living,
and who later was to put on the celebrated KDKA Harding election
broadcast, had been operating a radio telephone transmitter
experimentally from a garage at his home in Pittsburgh. Amateur
radio operators accustomed to dots and dashes began picking up
his program of phonograph records. They liked them and began
asking where the music was coming from.
"The thought came which led to the initiation of a
regular broadcast service", Mr. Davis said in that same talk
at Harvard. "An advertisement in a local department store in
a Pittsburgh newspaper, calling attention to a stock of radio
receivers which could be used to receive the programs sent out
by Dr. Conrad, caused the idea to come to me that the efforts
that were then being made to develop radio telephony as a con¬
fidential means of communication were wrong, and that instead
its field was really one of wide publicity; in fact, the only
means of instantaneous collective communication ever devised. "
A claim, however, has always been made by Station WWJ,
of Detroit, operated by the Detroit News , that it has been on
the air since August 20, 1920, and was the first radio station
in America to broadcast regular daily programs. The government
records show a license was not issued to WWJ until October 13,
1921. As a matter of fact, KDKA, which had been operating on
its old commercial license, did not apply for a broadcasting
license until more than a year after the Harding broadcast and
was the eighth station to be granted one. Nevertheless, as
explained by W. D. Terrell, Chief of the Field Division of the
Federal Communications Commission, who was one of the two
original radio inspectors in the United States, KDKA was really
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the first broadcasting station but was designated as a "limited
commercial service" station because broadcasting was not known
at that time as such.
The following is the official list furnished by the
Communications Commission of the first stations licensed in the
United
heading
States for broadcasting,
the list:
WBZ, at Springfield,
Mass. ,
Call
Letters
Licensee
Location
Date License
Issued
WBZ
Westinghouse Elec. Co.
Springfield, Mass.
9/15/21
WDY
Radio Coro, of America
Roselle Park, N. J.
9/19/21
WCJ
A. C. Gilbert Co.
New Haven, Conn.
9/29/21
WJZ
WJX
Westinghouse Elec. Co.
DeForest Radio Tele-
Newark, N. J.
9/30/21
graph & Telephone Co.
New York, N. Y.
10/13/21
WWJ
The Detroit News
Detroit, Mich.
10/13/21
KQL
Arno A. Kluge
Los Angeles, Calif.
10/13/21
*KDKA
Westinghouse Elec. Co.
East Pittsburgh, Pa.
11/ 7/21
KYW
Westinghouse Elec. Co.
Chicago, Ill.
11/15/21
KWG
Wireless Telephone Co.
Stockton, Calif.
12/ 7/21
KGC
Electric Lighting Co.
Hollywood, Calif.
12/8/21
KGB
Edwin L. Lorden
San Francisco, Calif.
12/8/21
KDN
Leo J. Meyberg Co.
San Francisco, Calif.
12/8/21
KFC
Northern Radio Co.
Seattle, Wash.
12/8/21
(* A license issued to this station Oct. 27, 1920 for 1 year
authorized the use of radio telephone apparatus; however,
the license of Nov. 7, 1921, was the first one issued express¬
ly for b/c service.)
An interesting thing about these first stations was that
they were all assigned to the same wavelength. In view of the
power of such a station as WLW at Cincinnati today with a half
a million watts, it is hard for the present day listener to
realize that KDKA, which is now a 50,000 watt station, only used
100 watts for the Harding broadcast. When the stations applied
for licenses they began to ask for higher power, more probably
than they were able or expected to use. WBZ was authorized to
broadcast with 1500 watts; VifJZ, 1500 watts; VifWJ, 2000 watts;
KDKA, 2000 watts; KYW, 500 watts; and KDN, now out of existence
and long forgotten, was granted 125 watts.
The first KDKA studio was on the roof of one of the
Westinghouse Building at East Pittsburgh. A phonograph was
operated in the room in which the transmitter was located, and
the announcer and others who had taken part in the program up
to this time also had been using this room. With larger aggre¬
gations of talent, however, it was necessary to seek bigger
quarters, so one of the auditoriums at East Pittsburgh was put
into use. Dr. Conrad and the engineers immediately had difficulty
in obtaining fidelity in the broadcast, due, apparently, to
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10/19/34
room resonance. To correct this they thought of placing the
band in the open air and to transmit from out-of-doors. When
this was done the result was a marked improvement. As a result
of this, they saw at once that if they wished to accomplish
good sound reproduction, specially designed rooms would be
required to broadcast from - but how, was not clearly apparent
and in addition the expense incident to it was a serious problem.
As the warmer weather was approaching, Dr. Conrad
decided to broadcast the artists from the open air studio which,
as before stated, was on the roof of one of the taller buildings
at the plant. For protection they e rected a tent. This proved
good and everything went along satisfactorily during the
Summer and early Fall, until one night a high wind blew the tent
away - and so the first studio passed out and into history.
"Necessity has always been the mother of invention,
and having managed to keep our service going for nearly a year,
we could not think of discontinuing it because we had no studio -
but we saw that we would have to go indoors. We, therefore,
decided to try the tent inside. Part of the top floor of this
high building was cleared and the tent 'pitched* on this floor.
We were pleased to find that it worked as effectively as it had
out-of-doors. Thus was the first indoor broadcasting studio
developed, " Mr. Davis later related.
"The subject of a. specially constructed studio, how¬
ever, was again revived and designs prepared for it. Taking
the lesson of the tent to heart, we draped the whole interior
of the new studio with the cheapest material we had available -
burlap. We had now all the elements of the present studio. "
XXXXXXXX
GERMANS INSTALL ANTI- FADING AERIALS
The site for the new German 150-kw. long-wave station
which is to take the place of the present Deutschlandsender at
Zeesen, has now been chosen. It is situated about 30 miles to
the southwest of Berlin. The new transmitter will be one of the
first long-wave stations to be fitted with an anti-near- fading
aerial, according to the Commerce Department.
The transmitter of the Stettin relay station has now
been completed, and will begin to operate this week. It has
been fitted with an anti-near- fading serial, and it will work
on the north German common wave with a power of 1.5 kw. in aerial.
The old Stettin relay station will close down. Work on the
Langenberg station has also progressed favorably, and operation
on the new anti- fading aerial with 100- kw. power will probably
start by the end of the month.
XXXXXXXX
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A.B.S. ADOPTS PRINTED PROGRAMS
Graduating from the multigraphed sheets, the American
Broadcasting Company now prints its programs in very much the
same form as the Columbia Broadcasting System. The A.B.S. sheets
are somewhat wider but ,like CBS, are dated at the bottom so that
a radio editor may quickly turn to a certain day's program.
XXXXXXXX
NEW ZEALAND FAVORS BRITISH MANUFACTURERS
A notable concession to British manufacturers of wire¬
less receiving sets has been made by the New Zealand Parliament,
which has just amended the customs tariff in order to place such
goods on the free list, if of British origin. Competing goods
from foreign countries will carry a duty of 35 percent.
The United States has hitherto enjoyed the bulk of
the business, though its proportion has dropped of recent years.
In 1931 the value of radio receiving sets Imported from the U.3.A.
was £119,895, but last year the values had dropped to L44,897.
XXXXXXXX
ONE ANTENNA FOR HOUSEFUL OF SETS
A single aerial swung high above the roof for maximum
signal pickup may be used by several radio sets without interfer¬
ence or loss of efficiency in multiple radio outlet system now
made available. This community antenna system has for its
objective the two- or four-family dwelling, and the like.
The present multiple radio outlet antenna system is
licensed under Patent No. 1,976,909 issued to A.A.K. , Inc., and
now offered in kit form by the Technical Appliance Corporation,
27-26 Jackson Avenue, Long Island City, N. Y.
XXXXXXXX
9
10/19/34
TO ARBITRATE RCA- MAC KAY CHINA DISPUTE
An international arbitration tribunal, composed of three
prominent European jurists, is studying the briefs and reply
briefs of the Radio Corporation of America and the National Govern¬
ment of the republic of China in an effort to determine whether
China, by operating jointly with the Mackay Radio and Telegraph
Company, a direct radio service between China and the United
States, violates the traffic agreement between China and the
Radio Corporation, dated Nov. 10, 1928, the New York Times sets
forth.
This action was begun last Summer when Mackay Radio
completed a contract with the Chinese National Government and
inaugurated a communications service between China and the United
States. The R.C.A. treaty with China provides for the arbitra¬
tion of all disputes arising from interpretations of the contract,
and each party selected one Jurist, while they in turn chose an
umpire to sit with them.
The members of the tribunal are Dr. van Hamel, of
Amsterdam, A. Hubert, of Brussels, and Dr. Fuhrer, of Switzerland.
It has not been determined where they will render their decision,
which is expected early next year. Meanwhile both China and the
Radio Corporation have provided the arbitrators with many exhibits
and documents in addition to the briefs, and it is believed the
tribunal is provided with all the elements it will need to decide
the case.
Radio communication alone is involved in this dispute,
which has no bearing on the various cable services operating
between China and foreign points. The radio Corporation for many
years has made contracts with numerous foreign governments or
telegraph systems to provide radio connections between the foreign
countries and the United States.
As most of the wire and radio services of foreign
countries are monopolies, the United States and Canada being the
only important exceptions, the Mackay Radio and Telegraph Company,
a newcomer in the international communications field, has found
it difficult to provide competitive services.
X X X X X X X X
WHY RADIO CITY DOORS HARD TO OPEN
Have you wondered in going through the NBC studios in
Radio City why the doors were so hard to open. The fact is that
every one of the 112 mahogany finished doors in the studios is
lined with lead. Three inches thick, the doors, to perfect the
sound proofing, are laminated with 3-inch white pine and two
layers of 4-pound or 1-1/6 inch thick sheet lead. At the sides
and top, they close against double rubber gaskets, which prevent
the sound from passing through the cracks, and at the bottom,
double automatic felt closers, plunger-operated, are provided.
It has been found that these doors reduce sound by about 39.85
decibels.
X X X X X X X
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DR. PUPIN DISPUTED BY DeFOREST
In a letter to the New York Times, Dr. Lee de Forest
writes from Los Angeles as follows:
"The expected jeremiad from Professor Pupin, promptly
following the final refusal of the United States Supreme Court
to once more review their second affirming of the de Forest-
Armstrong decision, prompts one to recall that not all the
laments, explanations and apologies of voluminous essayists
since 1815 have yet succeeded in altering the historic fact
that Napoleon was finally and decisively whipped at Waterloo.
"I shall content myself therefore merely with challeng¬
ing Professor Pupin’ s statement that ’the scientific world is
a unit in holding Armstrong to be the inventor. ' As nearly as
I have been able to observe, this so-called scientific ’unit'
is largely limited to Professor Pupin and his pupils, Hazeltine,
Hogan, Attorney Davis and, of course, Major Armstrong. In fact,
that word 'unit' would seem to have been excellently well chosen.
"While fully realizing that here in America plebiscites
are not ordinarily called to review, criticize or approve ver¬
dicts of the Supreme Court, I am quite willing to venture the
prediction that a straw vote taken among members of the Institute
of Radio Engineers and radio telegraph and broadcasting men
generally who have followed this litigation or the testimony
would show the Pupin 'factor of unanimity' to be a very consider¬
ably overestimated reciprocal of the actual opinions.
"Under the circumstances, there would appear to remain
one of two recourses open to Dr. Pupin and His 'unit' group:
either to reform the United States Supreme Court in accordance
with those ideals which he lauds of France and Germany, or - to
impeach it altogether. "
XXXXXXXX
MISCELLANEOUS DECISIONS OF COMMUNICATIONS COMMISSION
APPLICATIONS GRANTED. TELEPHONE DIVISION - W6XR,
Santa Cruz Oil Company, San Francisco, Cal. , renewal of license,
41000 kc. , 20 watts, and to change location from 311 California
St., to portable; K6XQ, Santa Cruz Oil Co., SS "Lake Miraflores",
renewal of license, 51400 kc. , 20 watts, location aboard SS "Lake
Miraflores" .
ACTION ON EXAMINERS' REPORTS, BROADCAST DIVISION -
NEW, Voice of Longview, Longview, Texas, C.P. for new station to
operate on 1370 kc. , 100 watts, daytime, reversing Examiner R.L.
Walker, granted; NEW , Chas. Henry Gunthrope, Jr., Nacogdoches,
Texas, denied application for new daytime station to operate on
1420 kc. , 100 watts, sustaining Examiner R. L. Walker.
11 -
10/19/34
MISCELLANEOUS, BROADCAST DIVISION
WCLC, Adirondack Broadcasting Co. , Inc. , HudsonFalls,
N. Y. , petition for C.P. to remove station to Albany, and approved
transfer of 90/ of the outstanding stock; WBAA, Purdue University,
W. Lafayette, Ind. , hearing postponed on application to modify
license by changing frequency from 1400 kc. to 890 kc. and in¬
creasing daytime power from 500 watts to 1 KW at the request of
WILL and WBAA, because the two stations have reached an agreement
which they say will result in the withdrawal of the protest which
brought about the hearing; WEHC , Community Broadcasting Corp. ,
Charlottesville, Va. , granted application to change frequency from
1350 to 1420 kc. , and power from 500 watts, daytime only, to 100
watts night, 250 watts day, unlimited daytime, sharing with WEED
at night; NEW , Plattsburgh Broadcasting Corp. , Plattsburgh, N. Y. ,
reconsidered and granted application for C.P. for new station to
operate on 1310 kc. , 100 watts, daytime only, site of transmitter
to be determined; WALR , WALR Broadcasting Corp. , Zanesville, Ohio,
suspended grant of authority to move station from Zanesville to
Toledo, because of protest of Station WJIM, Lansing, Mich. , WALR
operates on 1210 kc. , with 100 watts power, application for
removal set for hearing.
APPLICATIONS GRANTED
Telegraph Division
NEW ; Aeronautical Radio, Inc., Wenatchee, Wash., C.P.
frequencies 3005, 2854, 5377. 5* kc. , power 50 watts (*day only);
Geolectric Survey Co. , Portable, C.P. (Geophysical) 1602, 1628,
1652, 1676, 1700 kc. , 10 watts; New, Radiophone Corp. of America,
Portable-Mobile (Los Angeles, Calif.); C.P. 1614, 2398, 3492.5,
4797.5, 6425, 8655, 12862.5, 17310, 23100, 31600, 34600, 35600,
37100, 40600, 41000, 86000-400000 kc. , 100 watts, A3; City of
Harrisburg, Pa., Harrisburg, Pa., C.P. 30100, 33100, 37100, 40100
kc. , 25 watts, A3; Same applicant, portable-mobile within city
limits (5 applications, same), C.P. same as above except 9 watts
power; Victor Henry Ton.jes, Portable-Mobile (Berkeley, Calif.)
C/P. 31600, 35600, 38600, 41000 kc. , 50 watts, special; City of
Suffolk, Police Dept., Suffolk, Va. , C.P. 30100, 33100, 37100,
40100 kc. , 25 watts, A3; City of Zanesville, Zanesville, Ohio,
C.P. 2430 kc. , 50 watts, Emission: A3; City of Everett, Wash.,
C.P. 2414 kc. , 50 watts, A3; City of Jackson, Jackson, Mich.,
C.P. 2466 kc. , 50 watts, A3; Jack T, Jefford, NC-901-W, license
3105 kc. , 20 watts, A1 emission.
XXXXXXXX
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2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTI AL-Not for Publication
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INDEX TO ISSUE OF OCTOBER 23, 1934.
Educator Opposes Broadcasters By Proposing Government Ownership.. 2
Large Outlay For News Services . 5
W.C.T.U. Gets Ready To War On Radio . 6
August Broadcasting Trends Not Clear . 7
Utilities Not To Be Treated Unfairly, Walker Declares . 8
Radio Foreign Trade Notes . 10
WJSV Celebrates 2nd CBS Network Connection*! . 11
TVA Restates Its Position Re Government-Owned Radio Stations. ... 12
Applications Granted By FCC Broadcast Division. . . . 12
No. 768
October 23, 1934
EDUCATOR OPPOSES BROADCASTERS BY PROPOSING GOVERNMENT OWNERSHIP
About the only fly in the ointment for the broadcasters
who have just completed a 10 days' testimonial of their opposi¬
tion to the proposition that the Government should set aside a
certain percent of air facilities for religious and educational
programs, was when Dr. Floyd W. Reeves, Personnel Director of
the Tennessee Valley Authority injected himself into the hearings
and advocated a five-point plan of government ownership as
follows :
1. Government ownership and operation of a national system
of radio stations giving full-time coverage over the country
through suitable allocations of frequencies; 2. These frequencies
to be allocated with as little disruption of present commercial
facilities as possible; 3. The mechanical operation of the
system to be financed by the government; 4. Control of programs
to be under direction of a committee from foremost non-profit
national educational and cultural a.gencies to be designated by
the President; 5. The facilities to be available to non-profit
organizations, including government departments, for educational
and cultural programs.
Dr. Reeves said that he spoke for the "Tennessee Valley
Authority" but did not explain why the TVA was interested in
radio. Previously Dr. Joy Elmer Morgan, of the National Educa¬
tion Association, had gone on record against government ownership.
Dr. Reeves, who at one time was Professor of Education
at Chicago University, and formerly Dean of Kentucky College,
remarked that "even though the majority of the people may be
pleased with the radio programs, millions were disgusted. "
With the exception of Dr. Reeves, every day for more
than a week, witness after witness has declared himself in favor
of our present commercial broadcasting system. These have
included such celebrities as "Amos 'n' Andy", Paul Whiteman, Henry
Mencken, John Erskine and Sigmund Spaeth. "Amos" said last year
the Bureau of Internal Revenue expressed its thanks to them for
the manner in which they delved into the intricacies of income
taxes, the effect of which was to enlighten the citizen about
filling out his return.
Testimony in support of the existing system of broad¬
casting as one which adequately fosters education by radio given
by Miss Florence Hale, Director of Radio and former president,
and S. D. Shankland, Executive Secretary of the Department of
Superintendence of the National Education Association was regarded
as particularly significant because proponents of the plan for
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10/23/34
new legislation under which specific blocks of frequencies would
be allocated to educational, religious and other non-profit groups.
Among other witnesses who appeared before the Commission
were William Burke Miller, Director of Special Events broadcasts
of NBC; Alfred H. Morton, Manager of Program Development of NBC;
Mrs. Sidonie M. Gruenberg, Director, Child Study Association of
America; Miss Isabella Dolton, Assistant Superintendent of Schools
of Chicago; H. A. Bathrick, Assistant Superintendent of Schools of
Cleveland; Mrs. B. F. Longworthy, President of the National
Congress of Parents and Teachers, Chicago; Professor Joseph E.
Maddey and Professor Thomas A. Reed of the University of Michigan;
Dr. Augustus A. Thomas, Secretary-General of the World Federation
of Education Associations; Ben Marsh of the Peoples Lobby.
Mr. Shankland explained that experiments have been con¬
ducted in the use of radio facilities for education and that sample
programs currently being broadcast over NBC indicate that the
plans are working out satisfactorily. The immediate need of
education by radio, he asserted, is for the development of a
technique to encourage the public to listen and to secure educa¬
tors of sufficient ability to present these features, rather than
acquisition of exclusive facilities for educational stations.
Professor Thomas A. Reed, of the University of Michigan,
appeared as Chairman of the Committee on Civic Education by Radio,
a joint group representing the American Political Science Associa¬
tion and the National Advisory Council on Radio in Education.
Broadcasts are conducted on regular schedule over NBC on govern¬
ment, with good results, he declared.
Miss Dolton explainted that Chicago public schools have
used radio for nine years in fostering education. NBC, she
asserted, has been most cooperative, supplying all of the
physical facilities required, and in some instances footing the
bill for speakers who otherwise could not have been procured.
Radio has been used most successfully in class-room
instruction in the public schools of Cleveland, the Commission
was told by Assistant Superintendent Bathrick. Since 1932, a
total of 630 educational programs, designed for reception in
schools only, have been broadcast.
Two of the nation’s foremost radio engineers, John V. L.
Hogan, of New York, and Dr. C. M. Jansky, Jr., of Washington,
told the Commission that it was technically impossible to re¬
apportion broadcasting facilities along any of the lines proposed
without disrupting service for listeners, notably those residing
in rural or remote areas. These same engineers testified before
the former Federal Radio Commission in the historic reallocation
hearings of 1928.
The Commission also heard closing ste,tements from Frank
E. Mullen, Farm Program Director of National Broadcasting Company;
E. E. Kennedy, Executive Secretary of the National Farmers Union;
3
10/23/34
Frank M. Russell, Washington Vice-President of NBC, and Paul B.
Klugh, Legislative Chairman of the Radio Manufacturers' Associa¬
tion.
After relating in detail the present system of broad¬
cast allocations, and reciting the technical limitations, Mr.
Hogan said:
"The only feasible way to provide additional broadcast¬
ing services now seems to be to increase the band of wave fre¬
quencies assigned to broadcasting. The technology of the art is
not only still growing, but perhaps expanding at a more rapid
rate than every before. With the possibility that new develop¬
ments, now beyond the laboratory stage, in high fidelity trans¬
mission, in television, in facsimile, and in the ultra-high fre¬
quency field, may make profound changes in our views of broadcast¬
ing, this is surely a most inappropriate time to do anything that
would restrict or interfere with the present services, or which
would tend to establish rigid limitations that would handicap the
growth of this fascinating application of the newest things in
science to the service of our nationwide listening public. "
Dr. Jansky brought out that even with the existing
facilities over 50 per cent of the area of the United States is
dependent at night for its broadcast service upon the "secondary"
or remote service delivered by high powered stations on clear
channels. In this area reside some 43,000,000 people or approxi¬
mately 36 per cent of the nation's population, mainly on farms or
in small towns. "Argument as to the relative need for broadcast
service to such areas as contrasted with the need for additional
duplicated service in large cities", he said, I will leave to
others.
"If the proposal to assign 25 % of all broadcast sta¬
tions to one or more special services were to be followed out, it
would have to be done within the boundaries fixed by the limited
facilities that are now available for broadcast service. That
is, since there is no present way of increasing these facilities,
whatever is assigned to the new special services would have to be
taken away from those services now in existence."
Speaking for the radio manufacturing industry, Mr.
Klugh said it was their view that the broadcasters should be "com¬
plimented rather than criticized, for the variety of programs which
they have put out. "It seems to radio manufacturers", he asserted,
"that if a certain definite percentage of wave channels, facil¬
ities or time is arbitrarily allocated to any of the four grand
divisions of broadcasting, namely, entertainment, education,
religion and information, that it would be a great mistake and
would do much to diminish the popularity of radio and its
acceptance to listeners. We hold that the best judges of what
should constitute a radio program are the listeners themselves
and we are aware that all checks and surveys by broadcasters
have shown that they have been guided in framing their programs
solely by the desires of the listening audience."
4
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10/23/34
Mr. Mullen described the scope of the farm program
service rendered by NBC through its National Farm and Home Hour
and through numerous other programs devoted to the rural listener.
In 1927, he declared, only 40 station hours were devoted to farm
programs, as against 17,000 station hours in 1933. There were
but 50 speakers on the 1927 programs, as against 1,000, who gave
twice that number of talks, last year. And in 1927, he declared,
there were but 20,000 radio sets on farms as against 2,500,000
in 1933 and an equal number classed as rural. The value of the
radio time allocated gratis to agricultural programs, he declared
is $1,300,000. He said the American farmer gets the best radio
broadcasting service in the world.
Mr. Kennedy declared the Farmers' Union has utilized
radio with good results through regular broadcasts over NBC. He
attributed the 100 per cent increase in the membership of the
Union largely to these broadcasts, declaring that the farmer
regards the radio more highly than any other medium of communica¬
tion or information. Radio service, he declared, should be con¬
tinued without charge.
Statistical information showing the extent to which
Federal and State governments utilize the NBC networks was given
the Commission by Mr. Russell. Pointing out that 871 separate
broadcasts, consuming 250 hours had been utilized by Federal
officials from Washington during the year ended September 1, 1934,
he declared that the Federal G-overnment itself is by all odds
the greatest user of broadcast time for educational purposes.
XXXXXXXX
LARGE OUTLAY FOR NEWS SERVICES
An idea of what the independent bureaus gathering
news for broadcasting purposes are spending on their services
was given to the Federal Communications Commission when John
Shepard, 3rd, President of the Yankee Network, Boston, and Arthur
Kales, General Manager of Stations KFI and KE^A, Los Angeles,
appeared before the government body last week. Mr. Shepard
estimated his expense at $1,500 a week. For a year this would
mount to $78,000. Mr. Kales said his news service cost $34,000
a year.
"If the broadcasting industry is to continue to be an
essential part of home life, news and its many phases, as against
mere entertainment, must be a necessary part of our responsibil¬
ity", Mr. Shepard asserted. "News broadcasting is the greatest
single service radio can give to the public. It is equally
incumbent upon a station to give news while it is news. I have
no quarrel with either the Press-Radio News Service or the sta¬
tions which subscribe to it. But as far as I am personally con¬
cerned, I am definitely opposed to broadcasts of stale news. "
5
10/23/34
He said the New England chain had conducted a survey
during the week of August 13 to August 18 in all cities with
Yankee Network outlets to determine the listener interest of
news broadcasts. The survey was made while news matter was being
sent out over the stations.
"This survey", he said, "in which the question was
asked, "To what station are you now listening?" definitely
showed that 67.6 per cent of all those who had their radios
turned on were listening to the Yankee Network Radio News Service,
as against 32.3 per cent who were listening to all other stations
combined. "
The agreement between newspaper publishers and the
large broadcasters establishing the Press- Radio Bureau forced the
Yankee Network to set up its own newsgathering agency, Shepard
declared.
"I think it is an obvious statement that I would have
preferred not to have been forced to take this step", he stated.
"The arrangements preceding the formation of the Press-Radio
Bureau were satisfactory to the local newspapers, to the station
and I believe to the listening public. Nevertheless our own news
service has proven more satisfactory from the listeners* viewpoint. 1
He said that it cost the network $1,600 to report the
Massachusetts primaries and anticipated an equal expenditure for
the November election broadcasts.
"Indicative of the interest in news broadcasts we
received a phone call from American Falls, Idaho, asking if we
would broadcast the news of Congressional action in certain
legislation then pending affecting the town of American Falls",
Mr. Kales said. "From Alaska an owner of a moving picture
theatre advised us that he desired to install a good receiving
set in his theatre for the reception of KFI news reports and
that he intended to tune it in for his patrons since he found
many would otherwise stay at home in order to listen to KFI.
We also learned that a theatre in Honolulu opened 15 minutes
later than its regular schedule in order that its patrons might
stay home and listen to news broadcasting from the mainland. "
X X X X X X
W. C. T. U. GETS READY TO WAR ON RADIO
An aggressive drive to abolish all radio liquor adver¬
tising and to "clear the air of radio rubbish" will be started at
the Women's Christian Temperance Union convention in Cleveland,
Nov. 10, it was announced at W. C.T.U. headquarters in Evanston,
Ill. > this week . The headquarters statement said the attack will
be on "prograjns offensive to the home and unworthy of American
ideals and good taste. "
XXXXXXXX
6
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AUGUST BROADCASTING TRENDS NOT CLEAR
Broadcast advertising trends continued to be confusing
in the main, though some evidence of underlying firmness is dis¬
cernible. Revenues for the decline this year was slightly great¬
er than in 1933 when August revenues were but 5.9/ lower than
those of the previous month. National spot volume again showed
the strongest seasonal variation, being 21.7/ lower than in the
previous month. Local volume was approximately equal to July
while regional network volume experienced a gain of 31.2/. Thus
reports the National Association of Broadcasters.
August broadcasting was 6.4/ above that of the same
month of 1933. National spot volume was 17.9/ ahead of last
year's level, national spot business 9.3/ greater, and regional
network volume approximately equal to last year's figure. Local
broadcast advertising alone was lower than last year, experiencing
a decline of 13.9/ as compared writh August, 1933. It is encourag¬
ing to note, however, that the comparative showing of August is
better than that of July when local advertising was 20.4/ below
the level of the previous year.
The usual seasonal declines were experienced during
the month in the magazine and farm periodical fields.
Stations of 5 kilowatts and more in power were the
severest losers during the month, revenues of this class declining
21.6/ as compared to July, and reaching a level materially below
1933. Revenues of the 100-watt class rose 6.4/ as compared with
the previous month. Broadcast advertising volume over the 250-
1,000 watt class was 21.5/ greater than during the same month of
last year, and 34.0/ greater in the same case of 100-watt stations.
It should be noted that the "2,500-5,000 watt" and the
"over 5, 000-watt" classes have been combined in this report. This
has been done because of the very few stations in the former
group.
Declines in revenue as compared with July were greatest
in the Southern ard Mountain and Pacific areas. The New England-
Middle Atlantic district showed a gain of 3 7.8/ over August, 1933,
Middle Western volume was about equal to last year, Pacific Coast
volume slightly less and Southern volume off materially.
National spot electrical transcription volume was 12/
under last year. The live talent trend in this field continues,
volume of this type of business being 46.6/ above last year.
Both local and national post announcement business was lower than
in August 1933.
X X X X X X
7
10/23/34
UTILITIES NOT TO BE TREATED UNFAIRLY, WALKER DECLARES
The necessity for such utility regulation has so long
been apparent to the American people that the wonder is not that
regulation of the telephone utilities came so soon but that it
was so long delayed, Commissioner Paul A. Walker, of the Communica¬
tions Commission told Martin Codel in an interview broadcast by
National Broadcasting Company last Saturday night.
"Such regulation has come from an insistent demand on
the part of the public for an adequate control of rates and
practices of the telephone companies", Commission Walker said,
"The public has the right to expect adequate control of these
utilities which render a necessary public service.
"For a number of years State Commissions have from time
to time conducted investigations of telephone utilities and tele¬
phone rates, but these investigations have been woefully handi¬
capped because the States have had neither the means nor the
jurisdiction to develop essential facts. The State Commissions
have been unable to follow the ramifications of the utility
organizations through their holding companies and their various
subsidiaries, which include both the operating utilities and the
companies engaged in manufacturing and supplying equipment and
in carrying on experimentation and development. Thus, because of
the enormity of the task involved and because of matters which
were found to be beyond the jurisdiction of the State Commissions
and which could be reached only by the Federal Government, adequate
regulation through the individual States has been impossible. Nor
do telephone lines stop at the State borders. The telephone
system is a national system, and regulation of long distance toll
rates, must, therefore, be largely a matter of national regulation.
"My concept of utility-regulating commissions is that
such commissions justify their existence only as they function in
the public behalf. This does not mean that utilities are to be
treated unfairly or that they are to be needlessly harassed, but
it does mean that the public is to have its day in court, so to
speak, before a body created to see that the public is adequately
protected as to rates and practices of the utilities.
"The first requirement of a Commission so to function is
a proper conception of its purpose. The viewpoint, I believe, is
the essential thing. A full realization that the Commission is a
public agency, in the public interest, will take care of that.
But a second requirement practically as important, is that the
Commission should be manned with able and competent assistants,,
Our hope will be to develop a force of the most capable experts
to be found in the communications field.
"When your Commission really gets going, may we telephone
users expect a reduction in rates as the result of its work?" Mr.
Codel asked.
- 8 -
10/23/34
"You are keeping in mind, of course, long distance tele¬
phone rates, now within the jurisdiction of this Commission", Mr.
Walker replied. "This and other pertinent inquiries, I imagine,
are running through the minds of many thousands of telephone users.
But rate investigations are not concluded in a day. Moreover, this
is a new Commission. It will not only require some time to get the
proper set-up but also undoubtedly further provisions for funds
for pursuing rate investigations.
"I may say that my experience as a State Utility Com¬
missioner has shown me the difficulty of getting the necessary
facts in investigations of public utilities, with their holding
company ramifications, and the necessary accounting and engineering
data incident to the proper determination of rate bases. When
these facts are developed, and I hope there will be no undue
delay, we will then be in a position to determine what are reason¬
able rates.
"The scope of our investigation is, for practical pur¬
poses, very much broader than that reflected by the percentage of
business which is said to be merely interstate. The work that
this Commission does and the standards which it determines will
very largely influence the actions of the State Regulatory Commis¬
sions. In fact, we are commanded by the law to cooperate with the
State Utility Commissions, and these Commission have entered so
heartily into the spirit of cooperation that programs of joint
action between this Commission and the several State Commissions
may confidently be expected to be carried out.
"What about the future of the telephone as a medium of
communications? I'm told that research and experiment are far
from completed in that field", Mr. Codel inquired. "I've even
heard it suggested that the widening vista of radio wave lengths
may ultimately do away with our land line system and that radio's
short and ultra-short waves, multiplied and multiplexed, will one
day furnish plenty of avenues of cheap communication within cities
and between cities. What can you say as to that?
"That is a most important function of this Commission -
to watch and to encourage all new uses of communications, in the
public interest. Our organization should always be kept flexible
so that the right hand will always know what the left is doing",
was Commissioner Walker's reply.
"I regard it as one of our primary duties to stimulate
scientific development in every proper way. Every encouragement
should be afforded to the studies a.nd the research which may so
expand our methods of communication and lessen their cost as to
bring into closer communion the people of our country and of the
world. Who can vision the tremendous social significance of making
available to mankind the full possibilities offered by communica¬
tions and their development, with their wider uses in the home,
the school, the theater and the church? Who can vision the limit¬
less opportunities for education, entertainment, and for moral,
religious and social uplift through communications and their
widest use and distribution?"
X X X X X X
- 9 -
10/23/34
RADIO FOREIGN TRADE NOTES
That Persia may be developed as an outlet for American
radio receiving sets is pointed out in a report from Vice Consul
R. A. Hare, Teheran. After a detailed study of the market, the
Vice Consul is of the opinion that an increased demand for radios
may be anticipated and that American manufacturers should be in a
position to obtain a good share of the trade.
However, he emphasizes the fact that reliable and active
dealers must be secured who are willing to devote proper attention
to the matter of servicing. The possibilities for American radios
are indicated by the fact that a local dealer who recently dis-
played a sample receiving set received so many inquiries that he
immediately ordered a number of the same make.
"Radio Markets of Japan" is the title of an 8-page
multigraphed bulletin issued by the Electrical Division of the
Bureau of Foreign and Domestic Commerce, Department of Commerce
October 16th.
The Japanese radio market is good, radio being especially
popular, but the opportunities for importation of American appara¬
tus are not great. The Japanese industry is now highly developed,
and produces cheap sets capable of receiving the nearest stations
in most parts of Japan. The average purchasing power is very low,
and the class which can afford luxury items limited.
The price of the bulletin is 25 cents.
The Electrical Division has also issued a bulletin "Radio
Markets - Asia Minor". However, this evidently is nothing for manu¬
facturers to get excited about as climatically, the region is
torrid and radio reception is very difficult, even on the short
waves. There is no broadcasting in Asia Minor. Only a few people
are able to afford receivers, and these are mostly more or less
transient Europeans. The native standard of living, from psychol¬
ogical as well as financial cuases, doesnot include such items as
radio.
A report which covers the first seven months of the cur¬
rent year showsthat with the exception of January and February,
Germany’s monthly sales abora.d were higher in 1934 than last year.
The Netherlands continued to be the chief foreign outlet
for German radio equipment, importing 500 tons in the first seven
months of 1934 against 309 tons in the corresponding period of
10
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1933. Following the Netherlands, the principal markets for German
radios during 1934 were France, Saar Valley, Belgium, Argentina,
Sweden, Spain, Finland and Switzerland.
There will shortly be placed in operation by the news¬
paper La Nacion, of Buenos Aires, a radio-broadcasting station
which is said will be the most powerful in South America.
Practically all the equipment installed in the new broadcasting
plan is of German origin, having been sold by the firm of Siemens-
Schuckert under the trade name of Telefunken. Although 6 tubes
of 50 kilowatts each will be employed with the amplifier of the
new station, only 4 will be utilized at any one time. These will
be transformed into a modulating current of 50 effective kilo¬
watts for use with the antenna.
The popularity of radio in Germany shows no signs of
dminishing, according to a report from Vice Consul C. T. Zawadzki,
Berlin, made public by the Commerce Department.
German trade in radio equipment received such a strong
impulse after the close of the Berlin Radio Show that some of the
larger factories, even by utilizing their maximum production capac¬
ity, were not in a position to make deliveries. These difficul¬
ties in making deliveries are remarkable since no technical innova¬
tions were brought out this year. This, the report states, would
seem to prove that the restriction against the establishment of
new radio factories or the enlargement of existing plants can
hardly be based upon an over-capacity of the German radio industry.
During the past radio year, which closed with the 1934
Radio Show, it is estimated that 1,600,000 radio sets were sold,
of which 600,000 were the so-called "People’s Receiver" models.
About 300,000 of these low-priced models will at first be produced
in the current year, while 100,000 sets are on stock in factories
or in the trade.
X X X X X X X X
WJSV CELEBRATES 2ND CBS NETWORK CONNECTION
Station WJSV, the Columbia network's Washington outlet,
celebrated its second anniversary as a Columbia operated station
last Saturday with a gala birthday program from 10 to 11:30 P.M.
Jess Willard, now Assistant Mana.ger but the first announcer at
WJSV in 1932, was master of ceremonies and presented acts that
were favorites when the station first opened, acts that are on
the air today and brief glimpse of acts that will be on WJSV in
the near future.
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A brief address by Ted Church, Assistant Manager, recall¬
ed the numerous ''first broadcasts that WJSV has done in Washington.
Harry C. Butcher, General Manager of WJSV and the Columbia Broad¬
casting System in Washington, was unable to speak during the pro¬
gram but a brief message from him was read by Jess Willard.
William S. Paley, President of the Columbia Broadcasting
System, sent a wire which was also read during the program. Mr.
Paley wired - "The continual widening sphere of public usefulness
achieved by Radio Station virJSV, the Columbia Broadcasting System's
Washington outlet, is a source of deep satisfaction to the
Columbia management, and the response of the people of Washington
to our efforts to give them the best is a source of continual
encouragement. "
The unique feature of the program was the unexpected
debut of Arch McDonald, WJSV sports announcer, as a songbird. As
a singer, McDonald is still a very good sports announcer, accord¬
ing to advices from a member of the CBS staff, so he will not be
heard again until October 20, 1935.
XXXXXXXX
TVA RESTATES ITS POSITION RE GOVERNMENT- OWNED RADIO STATIONS
The Broadcast Division of the Federal Communications
Commission today (Oct. 23) made public the following telegram
received from Arthur E. Morgan, Chairman of the Board of Directors
of the Tennessee Valley Authority:
"In view of the fact that its brief statement to the
Federal Communications Commission was misinterpreted, the Tennessee
Valley Authority prefers to withdraw its former statement and to
restate its position as follows:
"The Tennessee Valley Authority has not urged or favored
governmental administration of radio stations. It is the opinion
of the Board of Directors that the educational and cultural
agencies of the country should have a reasonable use of the radio
facilities of the country but that all such programs should be
under non-governmental and non-partisan control and direction. "
The above telegram will be incorporated in the record.
XXXXXXXXX
APPLICATIONS GRANTED BY FCC BROADCAST DIVISION
Oct. 23 - WRAP, Paducah Broadcasting Co., Inc., Paducah,
Ky. , C.P. to increase power from 100 watts to 100 watts night, 250
watts day; KBTM, Beard's Temple of Music, Jonesboro, Ark., mod. of
C.P. to change location of studio locally and extend completion
date to Nov. 1, 1934; WOW, Woodmen of the World Life Ins. Assn.
Omaha, Neb., modification of C.P. extending commencement date to
Nov. 1, 1934 and completion date to May 1, 1935; WPEN, Wm. Penn
Broadcasting Co., Philadelphia, license to cover C.P. 920 kc. ,
250 watts, for auxiliary ourposes oniv.
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03
Droitwich British Broadcasting Giant Gets Into Its Stride . 2
New French Station Tops Droitwich By 50,000 Watts . 3
RMA Launches National Sales Promotion Campaign . . . 4
Educational-Religious Hearings Postponed . 5
Clear Channels At Stake In Regional Plea . 9
Television Here, 0. H. Declares, And New Deal Aid Too. ....... 10
FCC Sets Hearings On Wire Consolidation . 11
Telegraph Exchange Services Contracts Hearing Nov. 7 . 12
Industry Notes . 12
No. 769
'
DROITWICH BRITISH BROADCASTING- GIANT GETS INTO ITS STRIDE
Marking a new and important chapter in British broad¬
casting, the voice of Daventry, famous old English station, was
silenced last week. Droitwich, the new British Broadcasting
Company giant of the ether, after an intensive period of experi¬
menting, has finally taken over Daventry and from now on will
broadcast the full National program service.
Droitwich supersedes not only Daventry but also ulti¬
mately probably the National transmitter at Moorside Edge and the
west and London National stations, which are relay transmitters
assisting the Daventry to distribute the national program through¬
out the country on medium wavelengths. With the regular operation
there is also a big program shakeup. The most important change of
all, perhaps, is that which now gives listeners an alternative
program from the opening of the broadcast transmitters practically
until they close for the night. Hitherto, at various intervals
during the day, only a single program has been broadcast.
Because of the high power of Droitwich, 150,000 watts,
as against 30,000 watts of Daventry, it appears inevitable that
it will interfere with certain long-wave Continental stations on
most receiving sets. Already there have been complaints that
the station is too loud in some parts of England. Suggestions
are being made how to shield sets from what is called over there
"excessive" power.
"Britain’s giant radio station in the middle west of
England has arrived with a vengeance", says "Popular Wireless"
(London). "Its powerful voice penetrates the whole of the country,
from Land’s End to John o’ Groats. Not with the same intensity,
of course, but with certain exceptions, where conditions are
unusually bad. Droitwich gives yeoman service to everyone with
a radio receiver worthy of the name.
"In fact, so well does the new arrival do its job that
many receive a superabundance of energy from the towering masts
at Wychbold, where the transmitter is situated.
"Birmingham, the Potteries, the Black Country, the
Welsh Border, Gloucester, Cheltenham and scores of other places
and areas would say thank you to the B.B.C, for a reduction in
power. They are getting too much for some of the sets in use. "
"The B.B.C. 's biggest broadcaster has come on the air",
"Radio Pictorial" (London) writes.
2
10/26/34
"Already scares have started. People are saying that
sets will have to he scrapped, that the new giant will bring
interference and chaos, and that the present National stations
will have to close down.
"The trust is that the amazing Droitwich is going to
mean real programme service.
"It is hoped that Droitwich will give a satisfactory
service, under average atmospheric conditions, to nearly the
whole of the British Isles.
"Droitwich - a pleasant, rather sleepy old town.
Still puzzled at the honour which has been conferred upon it,
still wondering why it should have been singled out to provide a
name for that queer new place out there on the Birmingham road.
"The townspeople like to take a walk in the evenings
and survey their new acquisition with pride and satisfaction.
They look with faint awe at the grim, stern building. They peer
up at the immensely tall masts, whose tops are sometimes lost in
the clouds, hoping, perhaps, that they will provide a sensational
anti-climax by falling down.
"The good people of Droitwich have watched the proces¬
sion of lorries and labourers, of machinery and men, to what was
once a peaceful stretch of meadows fronted by a row of ancient
cottages. They have seen a modern wonder rising before their
very eyes.
"It is impossible to be in the Droitwich station for
long without being facetious. I hope you understand. To let
ordinary people into the place is like admitting manicurists
into the ranks of surgeons. They’re out of their depth, and
it's a question of joking or being removed in a straight- jacket.
"Only when you have been away from the place for days
do your begin to appreciate something of what you have seen.
G-radually, then, you begin to realize that you have seen a
modern miracle. "
XXXXXXXXXX
NEW FRENCH STATION TOPS DROITWICH BY 50,000 WATTS
Not to be outdone by the British, France is to erect a
new broadcasting station, the power of which will be 200,000
watts, 50,000 watts more than Droitwich. It will belong to the
state and the site chosen is near Thourie ( Ille-et-Vilaine ) at a
place called "Le Moulin de Saint-Lif f ert. " Approximately 30
acres have been reserved for the installation, the work on which
has just been started. The foundations are being constructed and
they are destined to support a unique type of pylon, the height
3
10/26/34
of which will be 200 meters. The power of the new station will
be about 200 kilowatts, and the buildings will include the pylon,
broadcasting station, rooms for the personnel, and stores. The
total expense authorized is 2,642,000 francs.
As soon as the Radio-Thourie starts functioning, the
Rennes station will be closed. The broadcasting in the Chamber
of Commerce studio will be relayed by a subterranean telephonic
cable to the Thourie station, which will amplify, modulate, and
then broadcast.
At the present time they are studying the installation
projects for the cable, which will be installed at the beginning
of 1935, Assistant U. S. Trade Commissioner Lestrade Brown at
Paris, reports.
XXXXXXXX
RMA LAUNCHES NATIONAL SALES PROMOTION CAMPAIGN
A national sales promotion campaign for the radio
industry, in the interest of distributors, dealers and also
broadcasters as well as manufacturers, will be launched by the
Radio Manufacturers' Association in November, Bond Geddes,
Executive Vice-President has announced.
The industry advertising program, to be conducted by
the Association with an outstanding advertising agency, was
approved and ordered by the Board of Directors at a special
meeting last Thursday in New York City. The Board unanimously
adopted the national institutional project for radio sales
promotion. It will be in charge of a special committee of which
Powel Crosley, of Cincinnati, is Chairman, and of which Presi¬
dent Leslie F. Muter, of the RMA, and W. S. Symington, of New
York, are members.
The radio manufacturers' national program is an out¬
growth of the previous "Five Point" plan considered by the RMA
and the Radio Wholesalers 1 Association. The Board of the
former association decided on the immediate national program,
financed and conducted by the manufacturers, to start in
November and continue vigorously through the Winter season with
future plans for its enlargement and continuance through 1935.
XXXXXXXX
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10/26/34
EDUCATIONAL-RELIGIOUS HEARINGS POSTPONED
At the conclusion of the session last Saturday morning
(October 20), Hampson Gary, Chairman of the Broadcast Division
of the Broadcast Division of the Federal Communications Commis¬
sion, ordered a two weeks' postponement of the educational-
religious program hearings. Inasmuch as the Commission will not
be required to make its recommendations as to whether additional
facilities shall be allotted to this type of program until
February 1st, delays at this stage of the procedure are more or
less inconsequential. A resumption of the hearings is tentatively
set for Monday, November 4.
The witnesses yet to be heard are mainly those of the
government and Dr. Levering Tyson of the National Advisory Council
on Radio in Education. Those in the government who have asked
to appear are W» B. Dolph of the National Recovery Administration;
Dr. Ella Oppenheimer, of the Children's Bureau, Department of
Labor; Owen A. Keen, of the Post Office Department, and Morse
Salisbury of the Agriculture Department. On the assumption
that the broadcasters would advocate widening the broadcast band
as a means of providing more room for stations, Army and Navy
officials were expected to be heard from. However, that issue
has not been raised and they probably will not appear.
Dr. Tracy F. Tyler, of the National Committee on Educa¬
tion by Radio, in charge of the educational presentation, has
the opportunity of presenting any witnesses he may desire in
rebuttal.
More time has been made available for educational
broadcasting than the educators themselves have been able or
willing to use to good advantage, Alfred J. McCosker, President
of WOR, New York, and past president of the National Association
of Broadcasters, testified as the broadcasters concluded their
case.
"We get this reaction when presenting educational pro¬
grams in series", Mr. McCosker observed, "that while high points
of interest are frequently attained, experience shows that there
is considerable variation and the programs are frequently below
par. WOR has observed no definite demand for additional evening
hours for educational programs on the part of educators and
certainly none from the listening audience. "
Lambdin Kay, of Station WSB, Atlanta,, Vice-President
of the National Association of Broadcasters, told how he had
persuaded A. Atwater Kent in 1926 to donate receiving sets to
every public school, white and colored, in Atlanta. Every day
classes would gather about the loud-speakers in all the schools
to listen to the broadcasts from WSB.
"This city-wide installation of public school radio
represented the first of the kind in America,", Mr. Kay asserted.
5
10/26/34
It would be denounced as outrageously unjust if news¬
papers and periodicals were compelled to publish a stipulated
amount of matter relating only to specific classes, the Atlanta
speaker ventured.
Local educational institutions have made no effort
to avail themselves of the facilities of WSFA, at Montgomery, Ala. ,
S. Gordon Persons, its manager, informed the Commission.
"For the past two years we have deliberately talked
to local school and State educational authorities and they have
evidenced no desire whatever to use our station in their work",
was his parting shot.
College professors are not radio-minded., Pa 0. Davis,
Secretary of the Alabama Polytechnic of Auburn, Ala. , represent¬
ing WAP I, observed to the Commission.
"Unfortunately, and this is no criticism of college
professors, they are not interested in broadcasting", the
Polytechnic executive continued. "They are busy men and women
and they do not have much time to think about preparing broad¬
casts. In other words, they are employed on full time jobs with¬
out that and they are not expected to do good broa.dcasting. "
Also Mr. Davis said that the educational people were
not able to furnish the money or sufficient programs to operate
WAPI successfully though they were joined by the University of
Alabama and Alabama College. Finally they leased the station
after spending $110,000 to install it in Birmingham, in the hope
that it might be made to pay where the population was greater.
"We now have all the time we really want for institu¬
tional broadcasting and get a rent of $775 each month", Mr. Davis
commented. "My conclusion is that educational institutions
usually make mistakes when they go into a business venture of
any kind. "
WG-N, owned by the Chicago Tribune, does not sell time
for political speeches or for religious services, Quin Ryan,
Broadcast Manager of the station informed the Commission. All
programs of this nature are broadcast without charge as part of
the station’s public service.
"We make an earnest effort to have the various diver¬
gent views on ail subjects of sectional or national (as distin¬
guished from purely local) importance presented over WG-N", Mr.
Ryan continued, "and we invite national figures, political civic
and educational, to use our facilities free of charge; if these
speakers present a controversial subject, we invite their oppon¬
ents to use our facilities in reply. "
In broadcasting programs this Fall for the University of
Chicago and for Northwestern University, WG-N will maintain tele¬
phone lines from its studio to both campuses, at an expense of
approximately $500 a month, Miss Myrtle E. Stahl, Mr. Ryan's
6
10/26/34
assistant informed the Federal Commissioners.
"At no time has WGN been apathetic on the subject of
education by radio", Miss Stahl declared. "On the contrary we
have been annoyingly aggressive and persistent in our efforts to
persuade the various educational institutions of Chicago and
Illinois to use our facilities in the presentation of educational
programs. "
Previous attempts to secure the allocation of a fixed
percentage of radio facilities for the use of educational institu¬
tions have caused considerable concern to the University of
Chicago and the reopening of the entire question in the present
hearings has again aroused fear for the security of the radio
opportunities now enjoyed by the University, Allen Miller, Chicago
University radio director, informed the Commission. He estimated
that last year the value of the time donated by Stations WGN,
WMAQ, and WJJD, totalled $186,000, figured at the commercial
rates for time.
Mr. Miller observed that there are only a limited few
in any college faculty who have personalities that can be project¬
ed successfully to an unseeing audience. He expressed the opinion
that the primary function of education by radio is the stimula¬
tion of dormant interests of the listeners for information.
"We do not attempt to give our listeners a college
education by radio", the Chicago University speaker submitted.
Even though a special channel were set aside for educational pro¬
grams, Northwestern University could not materially increase its
educational work in radio owing to the lack of available time on
the part of the faculty, Edward Stromberg, Publicity Director
of Northwestern, said.
How broadcasting the opera in Los Angeles hurt the box
office to the extent of his giving a check of $1,200 to reimburse
them but later doing such a good job of advertising that the box
office showed a material increase, was related by Arthur F. Kales,
General Manager of Stations KFI and KEGA, Los Angeles. He said a
middle class heretofore untouched by opera found the sample given
over the radio sufficiently interesting to take a chance on
attending in person.
People still have to be educated to like educational
programs, Carl Haverlin, Sales Manager of KFI and KEGA, Los
Angeles, testified.
"The general public is most at fault in being apathetic",
Mr. Haverlin said. "We have found that the educational groups
have seldom proved able to present their programs in such a
manner as to attain a high degree of listener interest. Their
command of the subject is nearly always adequate but they lack
showmanship. "
Five thousand letters were sent out by Stations KOMO
and KJR, of Seattle, to principals of schools, presidents of
7
10/26/34
civic organizations and ministers, telling them that Congress was
to conduct an inquiry into the educational-religious program situ¬
ation and asking them to express their opinion on the proposition.
About 500 letters were received in reply.
"It is surprising to see that there was almost no expres¬
sion of approval for this legislation", Donald F„ Graham, of
KOMO and KJR, reported. "Bear in mind we asked them, the people
who are supposed to be identified with the proposal to set aside
a fixed percentage of radio facilities, that is, those who are
interested in education and religion, and I don’t believe there
is a letter which unqualifiedly advocates it, and 99.99 percent
of them condemn it. "
The granting by the old Radio Commission of a 50,000
watt construction permit to a religious group in Southern Califor¬
nia, was recalled by Guy Rarlor, Jr., of Station KNX, Los Angeles.
"The permit was kept alive for a year or more and no
actual construction work was done", Mr. Rarlor went on, "I believe
that, if nothing else, shows that in California the educational
and religious side of broadcasting is well being taken care of by
existing broadcasters and there is no crying demand on the part of
any of those institutions for particular frequencies all their own. "
An audience well over 100,000 school children listening
in an organized way over Stations WLW and WSAI, Cincinnati, with
at least another 100,000 children who listen occasionally over
other school room equipment, Ben Darrow, of the Ohio State Depart¬
ment of Education, estimated. In the Buffalo area the present
stations supply ample facilities and time for all cultural organ¬
izations which can present worthwhile programs and the colleges
and universities would not welcome additional time if it were
available for them, Stephen C. Clement, State Teachers College
at Buffalo, advised the Commission. There is no need felt by
listeners for additional programs of this character.
That he started broadcasting, not because he wanted to,
but because he was urged to by the officials of the radio station,
was the experience of Rabbi Joseph L. Fink, of Buffalo.
"When we learned of the proposal to devote 25 percent of
the broadcasting time to education and religion, we became fear¬
ful", Rabbi Fink said. "We believe it ill-advised to force a
private agency to allow time for broadcast purposes, because we
fear what may be broadcast may not be religion in its broadest
terms but in its narrowest and most sectarian, and will serve
harmful rather than helpful purposes in the community. "
Whether we all agree with everything done by radio or
not, in a very definite way radio as a whole is living up to its
obligation to serve the public interest, as represented by the
wishes and needs of the majority, Alfred H. Kirchofer, Managing
Editor of the Buffalo Evening News and Vice-President of Station
WBEN, Buffalo, commented.
- 8 -
\ :
;• r
10/26/34
"Radio has been built by commercial interests and
advertisers", Mr. Kirchofer continued. "It may not be everything
that the uplifters want; it may not yet be everything that those
of us engaged in broadcasting wish it to be; but it has made a
substantial and magnificent contribution to cultural advancement,
music appreciation, common understanding, diffusion of knowledge
and distribution of entertainment which, on the whole, has been
wholesome and beneficial to the morale of the nation.
"I do not say that education should not have facilities
which it may properly be entitled to have; but until education
by radio is taken out of the experimental and guess-work stage,
its proponents should not come here to demand wholesale destruc¬
tion of an industry which is meeting its obligations to the
Government and the public. "
XXXXXXXX
CLEAR CHANNELS AT STAKE IN REGIONAL PLEA
one
The system whereby only/station may broadcast on a
clear channel was seen to be in further danger of being broken
down as a result of the application of numerous stations to broad¬
cast on the frequency of 640 kilocycles now being used by KFI,
a 50,000 watt station of Los Angeles. Hearings are now being
held on the subject by the Broadcast Division of the Federal Com¬
munications Commission of which Hampson Gary is Chairman.
In 1928, 40 clear channels were established but since
then 9 of these have been more or less broken down by permitting
other stations to broadcast on the same frequency. As an outcome
of the present hearings, it is believed that a definite policy
may be adopted as to clear channels. Senator Dill advocated
having instead of only one high power station on a frequency
that there be two, but as widely separated as possible, one on
the Atlantic and the other on the Pacific Coast.
Stations which are desirous of broadcasting on the 640
WFI clear channel are WJAY, Cleveland, seeking to increase its
power to 1000 watts, the Portland, Me., Broadcasting Company, a
new station, seeking 500 watts, the Eastland, Me. , Company, 100
watts, the Kunsky-Trendle Broadcasting Corporation, Detroit, a
new station, 10,000 watts, WAAB, Bay State Broadcasting Company,
Boston, 5,000 watts, WFLA-WSUN, Clearwater, Fla., 5000 watts;
WORC, Worcester, Mass. , 500 watts; KFUO, St. Louis, 1000 watts,
and Irving Sisson, a new station at Pittsfield, Mass. , 1000 watts.
XXXXXXXX
9
10/26/34
TELEVISION HERE, O.H. DECLARES, AND NEW DEAL AID TOO
Television is here, and ready for the public, so far as
receiver technique is concerned", 0. H. Caldwell, writes in
Electronics for October. "There can be no doubt of that in the
mind of anyone who has made the rounds of the laboratories where
serious work is being done. Television pictures today are clear,
well-illuminated, and compare in quality and detail with home
movies.
"But the transmission problem in television introduces
tremendous difficulties, chiefly financial. To provide television
programs throughout the country would require an initial invest¬
ment estimated at fifty to two hundred million dollars or more.
"This sum seems staggering to private capital. But to
a national government that is liberally handing out billions in
causes that seem less constructive, even $200,000,000 is not
unthinkable.
"Television transmitters have a sounder claim to govern¬
ment financing, in the present employment situation, than do many
other enterprises that have had generous federal aid. For each
television transmitter built will be the means of initiating the
manufacture of thousands of television receivers, involving
starting up factories, restoring employment, and injecting vast
new impetus into the lagging machine of national business. Indeed
television may be the long-sought "new industry" to pull us out of
the depression.
"From a social and governmental standpoint alone, the
implications of nation-wide television are tremendous. What would
it mean, for example, to further national unity of thought and pur¬
pose, if at the time of the President's delightful fireside chats,
he could be seen as well as heard.
"But how many homes will purchase television receivers
at $200 to $300 apiece, under present conditions, one naturally
asks. Already a paternally-minded government has provided for
financing these television receivers, under the terms of its
Tennessee Valley Authority, which is empowered to make long-term
loans for the purchase of home electrical applicances, and at the
discretion of its directors, to make such loans available to
citizens in all parts of the country. So that Uncle Sam and his
New Dealers are ahead of us, in the solution of that problem of
aiding the customer to buy.
"To many conservative radio and electrical men, this
picture of widespread government aid to our new infant prodigy of
television, will seem repugnant. But other less worthy causes
have sought federal aid and have prospered. If nation-wide tele¬
vision can come only with government aid, perhaps scruples of old-
time rugged individualism must be forgotten, and this 1935 miracle
be ushered in by new-deal financial methods. At all events, a
new industry, large in its employment possibilities, is now wait¬
ing at the gates of a sorely- tried world. "
X X X X X X X
- 10 -
O : . . V
10/26/34
FCC SETS HEARINGS ON WIRE CONSOLIDATION
A possibility of the consideration of a merger between
the Western Union and the Postal Telegraph was seen in the setting
of a hearing for Monday, December 3rd, to discuss the question of
"merging competing communication companies".
"While the Communications Act did not specifically
direct the Commission to investigate the question of merging com¬
peting communication companies, the matter was one of the most
important brought forward in the "Study of Communications by an
Interdepartmental Committee", authorized by President Roosevelt
and submitted by him to the Chairmen of the Senate and House Com¬
mittees on Interstate Commerce, on January 23, 1934, the Tele¬
graph Division of the Federal Communications Commission explained
in calling the hearing. "The Committee report was not unanimous
on the question of merging communication companies.
"Inasmuch as telephone companies have, since 1921, pos~«
sessed the right to consolidate, subject to approval, previously
by the Interstate Commerce Commission, and now by the Communica¬
tions Commission, it is expected that the proposed hearings will
be confined almost entirely to the desirability of permitting
consolidations involving telegraph companies and to the determina¬
tion of conditions and proper safeguards in case the Commission
decides to recommend to the Congress the enactment of legislation
authorizing mergers.
"In the preliminary report on communication companies
submitted to the House Committee on Interstate and Foreign Com¬
merce by Dr. W. M. W. Splawn as Special Counsel of the Committee,
the matter of mergers was again discussed., Among other things.
Dr. Splawn said, 'Telegraph by wireless or radio would likely
be consolidated with the wire companies if Congress should permit.
Before such permission is granted. Congress should carefully con¬
sider the effects upon the further development of telegraphy and
of the substitution of a monopoly for the existing competition.,**'*
The bill now considered holds in abeyance the answers to some of
these questions until such time as a further study and observa¬
tion may make clear what Congress might reasonably expect from a
given policy. 1 "
It is anticipated that the proposed hearings will
provide the Commission with ample material upon which to base a
considered recommendation to the Congress on this important ques¬
tion.
The International Telephone and Telegraph Company has
for sometime sought a consolidation of its Postal Telegraph system
with the Western Union, but the Western Union has opposed it. At
one time the I. T. & Tr system had an option on the communications
business of the Radio Corporation, but the deal failed and the
Western Union and Radio Corporation executed a traffic agreement
in opposition to the Postal's wire and radio system.
X X X X X X X
- 11 -
10/26/34
TELEGRAPH EXCHANGE SERVICES CONTRACTS HEARING NOV. 7
The hearing on contracts for exchange of services,
before the Telegraph Division of the Commission, scheduled to
begin Monday, November 5, will be recessed to 10:30 o’clock
Wednesday morning, November 7th. No evidence will be heard
until this time and it will be unnecessary for any interested
party to appear until that time and date.
The recessing of the hearing does not alter the require¬
ment that those desiring to be heard shall file written state¬
ments of desire to be heard on or before October 29th, as provided
in Order No. 10.
XXXXXXXX
0 O tt
: INDUSTRY NOTES::
In a quarter page ad in Variety , Ralph L. Atlass
announces the affiliation of his stations WJJD, Chicago, and
WIND, Gary, with the American Broadcasting System, adding:
"The advertising value of each of these two stations is
best indicated by the fact that spot national business for the
month of October, 1934, is running more than 200 percent ahead
of the same month last year. "
WOR is reported to have signed up for Moore’s Trans-
Radio News Service in preference to the Press-Radio Bureau, the
first New York station to do this.
The latest rumor with regard to Senator Dill’s future
plans comes from Milwaukee where he was said to be conferring
with Ota Gygi, manager of the ill-fated Ed Wynn network. Gygi
is now forming a regional network in Wisconsin, Illinois and
Indiana.
The ceremonies opening "America’s Little House" to the
public will be broadcast over the WA3C- Columbia network from 4:00
to 4:15 P.M. EST, Monday, November 5. William S. Paley, President
of the Columbia Broadcasting System, will deliver the official
opening address. The New York Committee of Better Homes In
America, Inc. , with the cooperation of the Columbia network has
erected the Little House at Park Avenue and 39th St. , New York
City, as a demonstration home for people of medium incomes.
XXXXXXXXX
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Heinl Radio Business Letter
CONFIDENTIAL — Not for Publication
/ -
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INDEX TO ISSUE OF OCTOBER 30, 1934*
New Day and Night Quota Affords Added Facilities . 2
Educational-Religious Hearings To Be Concluded* ....... . 5
Clear Channel Decision About 3 Weeks Hence . . . . 6
Use Radio Liberally To Beat Sinclair . 6
Contends Radio Music Slows Down Speedsters . 7
Radio Exports Rise . 7
Dr. Starch Puts The Microscope On Four Columbia Programs . 8
An Add to Story, "Clea.r Channel Decision About 3 Weeks Hence". 10
Industry Notes . 11
Applications Granted By Broadcast Division . 12
No. 770
i ; 1 % ?
October 30, 1934
NEW DAY AND NIGHT QUOTA AFFORDS ADDED FACILITIES
The new day and night quota just worked out by the
Federal Communications Commission will allow an expansion of radio
facilities in many zones and States. Heretofore the broadcast
quota system of radio facilities has been considered as a single
basic unit but because of the difference of atmospheric conditions
at the different periods and because interference caused at night
is different than that caused at day, the Communications Commis¬
sion decided that there should be a "night quota" and a "day
quota. "
The new quota facilities due and assigned follow:
FIRST ZONE - NIGHT
State
Due
Units
Assigned
Units
Over or under
Per Cent
Over or Under
Connecticut
2.13
1.89
-0.24
-11
Delaware
0. 32
0. 20
-0.12
-38
Dist. of Columbia
0. 64
0. 60
-0.04
- 6
Maine
1.06
0. 99
-0.07
- 7
Maryland
2.16
1. 95
-0. 21
-10
Massachusetts
5. 63
5.11
-0.52
- 9
New Hampshire
0. 62
0. 33
-0. 29
-47
New Jersey
5. 36
4.085
-1.275
-24
New York
16. 69
18.09
41. 40
-4- 8
Rhode Island
0. 91
0. 70
-0.21
-23
Vermont
0. 48
0.06
-0. 42
-88
Total
36.00
34.005
-1. 995
- 6
FIRST ZONE -
DAY
Connecticut
3. 85
2. 66
-1.19
-31
Delaware
0.57
0.33
-0.24
-42
Dist. of Columbia
1.16
1.00
-0.16
-14
Maine
1.91
1. 22
-0. 69
-36
Maryland
3. 91
3. 60
-0. 31
- 8
Massachusetts
10.17
6. 35
-3. 82
-38
New Hampshire
1.11
0. 60
-0.51
-46
New Jersey
9. 67
4. 955
-4,715
-49
New York
30.14
20.17
-9.97
-33
Rhode Island
1. 65
0.70
-0. 95
-58
Vermont
0. 86
0. 66
-0. 20
-23
Total
65.00
42. 245
-22.755
-35
2
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10/30/34
SECOND ZONE - NIGHT
Units Units Per Cent
State
Due
Assigned
Over or Under
Over or Under
Kentucky
3. 38
3. 95
4 0.57
17
Michigan
6. 25
5.06
- 1.19
-
19
Ohio
8.58
9.38
+ 0.30
+
9
Pennsylvania
12.43
12.54
-«• 0.11
1
Virginia
3.13
4. 70
4 1.57
+
50
West Virginia
2.23
1.93
- 0.30
—
13
Total
36. 00
37. 56
4 1.56
4
4
SECOND ZONE
- DAY
Kentucky
6.10
4.15
- 1.95
32
Michigan
11.28
5.96
- 5.32
-
47
Ohio
15.50
11. 56
- 3.94
—
25
Pennsylvania
22.45
14. 99
- 7.46
-
33
Virginia
5.64
5. 85
4 0.21
4
4
West Virginia
4.03
3. 90
- 0.13
-
3
Total
65.00
46.41
-18.59
—
29
THIRD ZONE -
NIGHT
Alabama
3. 32
2. 735
- 0.585
18
Arkansas
2.32
2. 67
+ 0.35
+
15
Florida
1.84
3. 65
4 1.81
4
98
Georgia
3. 64
4. 21
4 0.57
+
16
Louisiana
2. 63
5.10
4 2.47
4
94
Mississippi
2.52
0. 99
- 1.53
—
61
North Carolina
3.97
4.23
4 0.26
7
Oklahoma
3.00
3. 24
+ 0.24
-t*
8
So. Carolina
2.18
1.00
- 1.18
—
54
Tennessee
3.28
6.05
4 2.77
4
84
Texas
7.30
11.07
+ 3.77
+
52
Total
36.00
44. 945
+ 8.945
4
25
THIRD ZONE
- DAY
Alabama
5. 99
4. 285
- 1.705
__
28
Arkansas
4.19
4.75
4 0.56
4
13
Florida
3. 32
4.75
4 1.43
4
43
Georgia
6. 58
4. 90
- 1. 68
—
26
Louisiana
4.75
5.40
+ 0.65
4
14
Mississippi
4.55
2.11
- 2.44
—
54
North Carolina
7.17
4. 85
- 2.32
—
32
Oklahoma
5.42
4. 90
- 0.52
—
10
So. Carolina
3. 93
2.25
- 1.68
—
43
Tennessee
5. 92
7. 25
4 1.33
4
22
Texas
13.18
13.22
4 0.04
4
0
Total
65.00
58. 665
- 6.335
-
10
3
10/30/34
FOURTH ZONE - NIGHT
Units Units Percent
State
Due
Assigned
Over or Under
Over i
or Under
Illinois
10.14
11.03
- 0.89
9
Indiana
4. 30
3.42
- 0.88
-
20
Iowa
3. 28
5.02
+ 1.74
+
53
Kansas
2. 50
2.49
- 0.01
-
0
Minnesota
3.41
4.18
4 0.77
4
23
Missouri
4.82
5.00
+ 0.18
4
4
Nebraska
1. 83
2. 21
4 0.38
4
21
No. Dakota
0.90
1.40
4 0.50
4
56
So. Dakota
0. 92
0. 85
- 0.06
-
7
Wisconsin
3. 90
3.05
- 0.85
—
22
Total
36.00
38. 66
4 2. 66
-1*
7
ZONE
FOUR
- DAY
Illinois
18. 30
14. 74
- 3.56
19
Indiana
7.77
5. 55
- 2.22
-
29
Iowa
5. 93
7.26
4 1.33
22
Kansas
4.51
3.32
- 1.19
-
26
Minnesota
6.15
5.37
- 0.78
-
13
Missouri
8.70
8.21
- 0.49
—
6
Nebra ska
3. 30
5. 62
4 2 . 32
+
70
No. Dakota
1. 63
1. 90
4 0.27
4
17
So. Dakota
1. 66
2.03
v* 0.37
+
22
Wisconsin
7.05
5.56
- 1.49
—
27
Total
65.00
59.56
- 5.44
—
8
FIFTH ZONE -
NIGHT
Arizona
1. 32
1.02
- 0.30
23
California
17.18
18. 67
t 1.49
+
9
Colorado
3.13
4. 61
+ 1.48
4
47
Idaho
1.35
1..50
+ 0.15
f
11
Montana
1. 63
1.75
4 0.12
+
7
Nevada
0.27
0.35
4 0.08
4
30
New Mexico
1.28
1.13
- 0.15
—
12
Oregon
2.89
4.02
4 1.13
39
Utah
1.54
3. 30
4 1.76
+114
Washington
4.73
7.26
4 2.53
t-
53
Wyoming
0. 68
0. 40
- 0.28
—
41
Total
36.00
44.01
4 8.01
4
22
FIFTH
ZONE
- DAY
Arizona
2. 38
1. 66
- 0.72
30
California
31.02
21.05
- 9.97
—
32
Colorado
5.66
4. 98
~ 0. 68
—
12
Idaho
2. 43
1. 95
- 0.48
—
20
Montana
2.94
2. 30
- 0. 64
—
22
Nevada
0.49
0. 35
- 0.14
—
29
New Mexico
2.31
2. 90
4 0.59
4
26
Oregon
5. 21
5.89
4 0 . 68
13
Utah
2.78
3.30
4 0.52
+
19
Washington
8. 54
8. 50
- 0.04
—
0
Wyoming
1.24
0. 40
- 0.84
—
68
Total
65.00
53. 28
-11. 72
-
18
4 -
10/30/34
In increasing the daytime quota, Hampson Gary, head of
the Broadcast Division of the Commission, se^id it was not the
intention of the Commission to license additional new daytime
stations unless it was absolutely proven that they were needed.
However, the Commission authorized the maximum daytime power
increased to 5,000 watts.
XXXXXXXXXX
EDUCATIONAL-RELIGIOUS HEARINGS TO BE CONCLUDED
Hearings concluding the educat ional-religious program
sessions will be resumed Wednesday morning, November 7. Among
those who have been invited to appear are William Green, President
of the American Federation of Le.bor , and Charles Nockles, Secre¬
tary of the Chicago Federation of Labor. Mr. Green has more or
less endorsed the present system of broadcasting but the American
Federation of Labor has condemned it. Although the laboring
people were expected to attend the meeting in full force, none
as yet has appeared.
In fact, about half the other witnesses who expressed
their intention of appearing failed to show up. Father James
Harney, Superior General of the Paulist Fathers, whose protest
started the investigation, appeared only long enough to take issue
with Judge Rutherford, of the Jehovah's Witnesses sect, in a
matter of personal veracity. Father Harney, however, expressed
the intention of filing a brief later.
Henry A. Bellows, in charge of the Broadcasters' pre¬
sentation, will likewise file a brief, but Dr. Tracy F. Tyler
said that he had not decided whether he would file a brief or not.
Neither had he reached a decision in the question of offering wit¬
nesses in rebuttal. Commissioner Hampson Gary, Chairman of the
Broadcast Division, announced that all briefs would have to be
on file within two weeks after the close of the hearings. It is
not believed the hearings will run more than a week or so longer.
The witnesses yet to be heard, in addition to any
labor representatives who may appear, are principally those of
the Government and Dr. Levering Tyson of the National Committee
on Education by Radio.
XXXXXXXXXXXX
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10/30/34
CLEAR CHANNEL DECISION ABOUT 3 WEEKS HENCE
If the Federal Communications Commission complets its
hearings shortly as is expected in the so-called "640" case, a
decision is expected within the next two or three weeks. Numerous
stations have applied for permission to broadcast on the clear
frequency of 640 kilocycles now being used by KFI, a 50,000 watt
station of Los Angeles.
It is considered more or less a test case for if the
stations are allowed to do so, they will break down KFI ' s clear
channel. Clear channels have been broken down before but inasmuch
as the new Communications Commission is taking up the subject for
the first time, whatever action taken is apt to be a precedent
and an indication of future policy.
There is an impression, whether well founded or not,
that the Commission may let down the bars on the clear channels
and consent to a liberal power increase in the regional stations.
Their decision, however, will have to be awaited to determine
this definitely.
XXXXXXXXXX
USE RADIO LIBERALLY TO BEAT SINCLAIR
About everything is being adapted to radio in the "beat
Sinclair" campaign now in progress. For the final weeks of the
campaign every device known to opinion management and the artisans
of propaganda is being employed. Lord & Thomas advertising agency
is using four radio programs to undermine the Sinclair arguments
through subtle arguments put across in the shape of entertainment
by professional actors. These are financed by the Republican
campaign fund.
"Novelty of the presentations is sure fire and a check
of the listening audience shows that a tremendous wedge is being
driven in spots where other agencies of promotion have failed
to make much more than a superficial dent", Variety reports.
"Show which is creating the most interest is tagged
'Weary and Willie.' Subject treats with two hoboes hopping a
freight to California and discussing the good things in store for
them in the advent of Sinclair's election. Script is well done and
the characters drive home the anti-Sinclair propaganda in a
whimsical but straight forward way. Theme is a parody on 'Cali¬
fornia, Here We Come. ' This one is on for a 15-minute swing
three times a week.
"In high favor is 'The Bonnets', aimed at the family
circle and smartly done. Various subjects of a political nature
are discussed around the fireside and the appeal is directed
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10/30/34
mainly at the women of the household. Intimate touch, is used.
"’Turn of Events', patterned after 'March of Time', is
an historical dramatization of events that skirt the political
border. This is disguised as entertainment for 15 minutes over
KHJ, the CBS outlet.
"Slotted every night on KNX is 'The Political Observer',
a supposedly non-partisan view of things politic, but highly
tinctured with anti-Sinclair promotion. Current events are mulled
pro and con. "
XXXXXXXX
CONTENDS RADIO MUSIC SLOWS DOWN SPEEDSTERS
Additional expert opinion that automotive radio tends
to reduce driving speed and is a safety factor, is contained in
a recent survey. Denying that American youth is "speed crazy",
the survey of H. G, Weaver, Director of the Customer Research
Staff of General Motors, states:
"The most outstanding point of difference between the
young people and the adult group is that an overwhelming majority
of the boys and girls want radios in their cars and it was pointed
out over and over again that radio equipment makes for slower,
safer ‘driving. As one college chap expressed it, 'Even the fast¬
est kind of fox trot doesn't blend nicely with a speed of over
50 miles an hour - and with waltz-time I find myself slowing down
to 40 or less. 1 "
XXXXXXXX
RADIO EXPORTS RISE
An increase in radio exports during both July and
August, latest months to be compiled, is reported by the U. S.
Department of Commerce. Exports of receiving sets during August
totaled 41,047 with a value of $1,096,674, as against 34,909 sets
in July valued at $1,030,693. Tube exports in August totaled
625,719 valued at $306,865, and 916,624 tubes at $469,491 in July.
Exports of loud speakers during August were 7,968 units valued
at $22,751, as against 15,270 units in July valued at $40,270.
Exports of radio parts and accessories during August were valued
at $422,901 compared with $462,966 in July.
XXXXXXXX
7
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- ' /- **-,
10/30/34
DR. STARCH PUTS THE MICROSCOPE ON FOUR COLUMBIA PROGRAMS
Copies of Columbia's study, "Ears end Income" just made
under the direction of John J. Karol, Director of Market Research
for the Columbia Broadcasting System, are now available.
This study of the actual listening audience of four
"selective" programs, is based on data gathered in a nationwide
investigation by Dr. Daniel Starch, Consultant in Commercial
Research. The four programs, whose approach and appeal, whose
talent and tempo, should tend to select a "higher- than-average
class" audience, included in this study are the March of Time,
the Chesterfield Program, the Philco Radio Program, the Fletcher's
Castoria program.
"It is interesting to note that the highest penetration
for each of these programs was found in the highest income class",
Mr. Karol observes. "In summary, the figures for actual listeners
to these four programs are as follows:
Highest Penetration in
Highest Income Levels
Chesterfield Program 76.0/
March of Time 65.9/
Philco Program 70.5/
Fletcher's Castoria Program 55.0 /
"I believe the last few pages of this brochure will be
found, of particular interest. Under the caption, 'Telling How
Many People How Many Times', data are presented which reveal that
the actual coverage achieved - the cumulative job done - by a
specific program, cannot be measured by determining the size of
its audience on a single broadcast, but must be expressed in
multiples of that audience, which are apparently limited only by
the appeal of the program and the cycle of the broadcast.
"The four definite conclusions of this investigation are
as follows:
1. Radio programs can be built to attract an audience in
upper income levels (all income groups over $3,000
per year) as readily as in the lower levels.
2. Such programs can command a concentration of listening
in upper income levels without sacrificing the broad
base of their appeal to homes of average and less-than-
average incomes (all incomes under $3,000 per year).
3. A single network advertiser, with this type of radio
program, can penetrate top income levels most deeply,
bottom income levels least deeply, and score increasing
penetration in each ascending income level.
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10/30/34
4. Even with a "selective" program keyed to a selective
audience, it is possible for an advertiser, in a few
months of CBS broadcasting ...
to reach 2 out of 3 of all radio homes in all
income levels, 36,000,000 listeners (while he
reaches 3 out of 4 of all radio homes in the
upper income levels)."
Three more conclusions presented separately and a little
less boldly, because the measurement of "repetition" (intrinsic to
these findings) was based on less complete data.
1. A single advertiser, reaching a total audience of
36,000,000 actual listeners (in less than four months
of broadcasting on the Columbia Network), reached them
an average of 10 times each.
2. Another advertiser (with a smaller CBS hook-up and a
longer cycle of broadcasting) reached an audience of
30,000,000 actual listeners an average of over 70 times
each.
3. The actual coverage achieved - the cumulative job done -
by a specific program cannot be measured by determining
the size of its audience on a single broadcast - but must
be expressed in multiples of that audience, which are
apparently limited only by the appeal of the program and
the cycle of the broadcasting.
According to the paragraph "Telling How Many People How
Many Times" referred to by Mr. Karol, "The Chesterfield Radio
Program was found to have reached 69/ of all radio homes. That’s
over 12,000,000 homes - over 36,000,000 listeners, representing
the total audience reached by the Chesterfield Program up to
July, 1934 (45 broadcasts)."
"Less simple - even more arresting - is the correspond¬
ing story on the Philco Program. Here, for the second factor,
the size of the audience on a single broadcast - we have data
supplied by Sayre M. Ramsdell, Sales Promotion Manager of the
Philco Radio and Television Company. He reports, from studies
made over a wide area, that 27/ of the sets in use between 7:45
and 8:00 P.M. (the period of Boake Carter’s broadcasts) were tuned
to the Philco news program.
"Applying this figure to the number of radio sets in
use at that hour, and in the zones covered by the Philco hook-up,
it nets down to 2,000,000 radio homes, or 6,000,000 listeners per
broadcast. Dr. Starch's measurement of Philco 1 s cumulative
audience through June of 1934 showed that it had then reached 65/
of all radio homes within its broadcast area - about 30,000,000
listeners. "
XXXXXXXX
9
10/30/34
(AN ADD TO PREVIOUS STORY "CLEAR CHANNEL DECISION ABOUT
THREE WEEKS HENCE" - in Re: Petition of Broadcast Station
KFI, et al, decision which follows having just been
handed down late today, October 30, 1934)
"The licenses of certain clear channel stations petitioned
the Commission for an investigation of the service rendered on
clear channels and a restatement of the regulations regarding them.
The Broadcast Division has decided to conduct a thorough survey
of the broadcast structure both as to results of allocation on
clear channels and on channels to which more than one station is
assigned to operate simultaneously at night. This survey will
be made for the purpose of determining the service available to
the people of the United States and the type of station that the
listeners in rural areas are dependent upon for their service.
The degree of interference or impairment of service caused by
duplication of certain high power stations is to be investigated,
as well as the possibility of providing additional high power
stations without reducing the service to the listening public
from existing stations.
"The cooperation of the licensees of all broadcast sta¬
tions is requested in making this survey. All licensees volunteer¬
ing their field intensity equipment and personnel to make the
observations and measurements should notify the Commission of the
facilities which they are willing to place under the direction of
the Commission for conducting the survey. The extent and scope
of the survey will to some extent depend on the facilities that
are made available.
if
"An informal conference will be held at the office of
the Commission in Washington on November 9, 1934, for the purpose
of determining definitely the details of the survey and prorating
the assignments to the licensees volunteering their facilities.
This survey will be made under the strict supervision of the Com¬
mission and the measuring facilities of any station accepted will
not be limited to measurements on the licensee’s station alone,
but will be assigned other territories.
"This is the survey generally requested in Proposal
numbered (1) by the petitioners.
"The proposal numbered (2) is dependent entirely upon
the survey to be made and need not be considered further. It is
obvious that if the information and data secured from the survey
indicate that new or amended regulations should be promulgated,
they will be considered by the Division later.
"The Proposal numbered (3) of the petition, if granted,
would preculude the Division from taking any other or further
action with respect to duplicate nighttime operation on clear
channels. It is considered that to grant this proposal would
violate the spirit of the law. Therefore, Proposal numbered (3)
must be and is denied. "
XXXXXXXX
~ 10 ~
A 01
INDUSTRY NOTES
Manufacturers and users of lead-acid storage batteries
will be interested to learn of the recent completion by the electro
chemistry section of the National Bureau of Standards of measure¬
ments on the resistivity of sulphuric acid solutions in the range
from •+ 86° to -40°F.
Radio announcers, who have contested among themselves
for the American Academy of Arts and Letters annual medal for
good diction on the air for the past five years, now have an
additional annual award to inspire their efforts.
The advertising agency of Batten, Barton, Durstine and
Osborn has just announced "The B. B. D. 0. Cup for Good Announcing",
which will be awarded each year among the network announcers whose
programs are audible in New York City. The first cup will be
awarded shortly after January 1, 1935.
The dedication of the newest modern broadcasting studio
of America's pioneer radio station will take place over an NBC-
WJZ network on Friday, November 2, at 12 o'clock midnight EST.
KDKA, of Pittsburgh, will celebrate on that date the
fourteenth anniversary of its first broadcast by opening its new
and completely up-to~date studios and offices in the Grant Building
in Pittsburgh's business center.
A Washington dispatch in The New York Times of Oct. 9
reported that the Supreme Court had declined to review certain
decisions involving motion picture companies using the General
Electric and R. C.A. system of sound recording on film. This was
an error. The suits involved the Electric Research Products, Inc.,
and the R. C.A. The former is a subsidiary of the Western Electric.
The American Broadcasting System will join with State
and local officials in presenting a gala program to welcome the
new high fidelity station in Waterbury, Conn., to the ABS network
on Friday, Nov. 2. The entire program will be heard at 8; 45 P.M.
EST. Addresses will be made by U. S. Senator Frederick Walcott
and Governor Wilbur I. Cross, of Connecticut, and Mr. Pape.
The Waterbury American and The Republican, published by
William J. Pape, own and will operate the station which has been
assigned the temporary identification W1XBS. It is one of the
first stations required by the Federal Communications Commission
to transmit a high fidelity signal. It will also utilize dir¬
ectional antenna, another recent radio development.
XXXXXXXX
10/30/34
APPLICATIONS GRANTED BY BROADCAST DIVISION
October 30 - KWK , Thomas Patrick, Inc. , St. Louis, Mo. ,
license to cover C.P., 1350 kc. , 1 KW night, 2-| KW LS, unlimited
time; WCNW , Arthur Faske, Brooklyn, N. Y. , modification of C.P. to
move transmitter and studio locally in Brooklyn, and extend com¬
mencement date to at once and completion date to 30 days from
this date; WJR, WJR, The Goodwill Station, Detroit, Mich.,
license to cover C.P. covering move of transmitter and change
in equipment, 750 kc. , 10 KW, unlimited; WLNH, The Northern Broad¬
castring Co., Laconia, N. H. , license to cover C.P. 1310 kc* , 100
watts, daytime; KSLM, Oregon Radio, Inc., Salem, Ore., license
covering new station; 1370 kc. , 100 watts, daytime.
Also, WBBZ , Chas. Lewis Garrell, deceased, represented
by Howard Johnson, Ponca City, Okla. , license covering local move
of transmitter and studio, 1200 kc. , 100 watts, unlimited time;
KWCR, Cedar Rapids Broadcast Co. , Cedar Rapids, la. , license
covering change in frequency from 1420 to 1430 kc. and increase
in power to 250 watts night, 500 watts LS, unlimited time; KGBZ,
KGBZ Broadcasting Co. , York, Neb. , license covering changes in
equipment and increase in power from 500 watts night, 1 KW LS, to
1 KW night, 2-g- KW LS, shares KMA; WSMK, Stanley M. Krohn, Jr. ,
Dayton, Ohio, consent to voluntary assignment of license to WSMK, Inc.
Miscellaneous
KMLB, Liner's Broadcasting Station, Inc., Monroe, La.,
granted petition to take depositions in support of its application
for change in frequency and increase in power to be heard Nov. 13,
1934, at Washington, D. C. ; WTJS, The Sun Publishing Co. , Jackson,
Tenn. , hearing scheduled for Nov. 12, 1934, continued for an
indefinite period; WNBR, Memphis Broadcasting Co, , Memphis, Tenn.
(same as for WTJS); V/TM J , Milwaukee Journal, Milwaukee, Wis. ,
reconsidered and granted request for an increase in daytime power
from 2-| KW to 5 KW, no change in night power which remains at 1 KW;
WMBH , Joplin Broadcasting Co., Joplin, Mo., reconsidered and
granted modification of license to change hours of operation from
specified to unlimited, upon motion of Commissioner Brown.
Also, WBAA, Purdue University, W. Lafayette, Ind. ,
reaffirmed grant of June 29, 1934, for modification of license
changing frequency from 1400 kc. to 890 kc. , and increasing day
power to 1 KW-LS, following withdrawal of the protest of Station
WILL; WKBF , Indiana Broadcasting, Inc., Indianapolis, Ind., re¬
affirmed action of June 29, 1934, granting unlimited time; WEBR,
Howell Broadcasting Co, , Buffalo, N. Y. , redesignated for hearing
amended application for C.P. to authorize change in frequency to
800 kc. , increase in power to 1 KW, and reduce hours of operation
from unlimited to sunset at Dallas, Texas, and to install new
equipment; WALR , WALR Broadcasting Corp. , Zanesville, Ohio, sus¬
pended grant made Oct. 12, 1934, for removal of Station WALR from
Zanesville to Toledo, to operate on 1210 kc. , 100 watts, because
of the protest of Station WHBU, Anderson, Ind. An application
for removal was designated for hearing.
XXXXXXXX
- 12 -
'V !•
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
\
INDEX TO ISSUE OF NOVEMBER 2, 1904o
Labor to Petition FCC for 50^ Of Radio Channels . 2
Composers Dany Monopoly Charge . 5
Educational-Religious Hearings Start Again Nov„ 7. . . , . 6
Declare Chain Broadcasts Helpful In Voluntary Work . 7
Safeguard Sought For Police Radio . 9
FCC To Investigate Interference In Pinchot’s Speeches . 10
Telegraph Hearing To Be Held Monday, November 5 . 11
Canadian Radio Executive Joins NBC . 11
Industry Notes . 12
No. 771
LABOR TO PETITION FCC FOR 50^ OF RADIO CHANNELS
The American Federation of Labor at its recent convention
in San Francisco unanimously adopted the report on four resolutions
recommended by its committee on radio, dealing with radio educa¬
tional program, radio facilities for organizations operating on
a non-profit basis, radio allocations, and a clear channel for
Station WCFL, the labor station in Chicago.
The Committee reporting on such matters recommended non¬
concurrence with the resolution that the 54th convention of the
A. F. of L. advocate and support the enactment of legislation at
the next session of Congress for the nationalization of broadcast¬
ing and the report of the committee was unanimously adopted.
Following are the resolutions in full, with the exception
of the lengthy one dealing with a clear channel for WCFL, and the
action taken on them:
Radio Educational Program (Resolution No. 55)
WHEREAS, There is a crying need for a more thorough exposi¬
tion of the true meaning of the American Federation of Labor move¬
ment in American life; and
WHEREAS, Union periodicals, union speakers and union organ¬
izers are unable to reach a very large percentage of the individ¬
uals who make up the general public; and
WHEREAS, A large number of this general public must rely on
papers, community leaders and employers hostile to the labor move¬
ment for their impressions of the American Union movement; and
WHEREAS, Various State Federations and other affiliated bodies
have effectively influenced public opinion, in favor of the Labor
movement, by the presentation of radio programs in the interest of
Organized Labor; therefore be it
RESOLVED, That this Convention adopt a fuller use of radio
broadcasting, as a means of influencing the opinion of farmers,
unorganized workers, members of company unions and the general
public to a more favorable consideration of the American Federation
of Labor movement; and be it further
RESOLVED, That this Convention recommend that the
Executive Board of the American Federation of Labor undertake the
preparation of at least thirty programs each year, such as
dramatization of Labor history, organization speeches and speeches
to convince the American public of the true importance of the
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true importance of the American Labor movement in the upbuilding
and maintenance of the American standard of living, and that the
Executive Board make these programs available for presentation by
electric transcription to the general public, through the various
available broadcasting stations.
Radio Facilities For Organizations Operating On A Non-
Profit Basis (Re s olution No. 171)
WHEREAS, The Congress of the United States recognizing the
value of radio communication has reserved control of radio as a
public property, placing authority to issue licenses for temporary
periods to a governmental agency, namely, the Federal Communica¬
tions Commission acting for the Congress; and
WHEREAS, The last session of Congress recognizing the growing
dangers of a radio monopoly directed the Federal Communications
Commission to investigate and to report to Congress prior to
February 1, 1935, what percentage of radio facilities should be
alloca.ted to organizations or associations operating on a non¬
profit basis; and
WHEREAS, We recognize the value of radio as a means of mold¬
ing public opinion and also the present tendency toward monopol¬
istic control; therefore be it
RESOLVED, That the American Federation of Labor petition the
Federal Communications Commission and the Congress of the United
States insisting that not less than 50 per cent of all radio
facilities be allocated to organizations or associations operating
on a non-profit basis.
Radio Allocation (Resolution 200)
WHEREAS, As a result of the monopolistic control of radio on
the part of national networks, controlled as they are by central¬
ized financial interests, which networks defy the law of the land
in maintaining, "Yellow Dog" company unions, thus enslaving their
workers; and
WHEREAS, As most all of the powerful radio stations are the
property of and controlled by these centralized financial inter¬
ests which deprive local communities of programs on educational
and other subjects which would advance the cultural interests of
the American people during the evening hours when the workers have
the opportunity of being at home; and
WHEREAS, Congress has recognized the unfairness of this mon¬
opolistic condition wherein radio broadcasting is under the control
of a privileged few and has directed the Federal Communications
Commission to investigate and to report to Congress before February
1, 1935, what percentage of radio facilities should be alloca.ted
to organizations operating on a non-profit basis, which bodies are
organized for the purpose of advancing the cultural and educational
interests of the American people; and
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WHEREAS, The privilege of and power to operate radio stations
has been specifically reserved as a public property to Congress,
and Congress has designated the Federal Communications Commission to
act as an agency of Congress only; and
WHEREAS, The American Federation of Labor is opposed to the
continued allocation of public properties to financial interests
wherein a privileged few profit at the expense of the people,
therefore be it
RESOLVED, That the American Federation of Labor record its
militant opposition to the allocation of more than fifty per cent
of this public property to organizations operating for private
profit; and further, that the American Federation of Labor notify
the Federal Communications Commission and Congress of our opposi¬
tion; and be it further
RESOLVED, That we register our protest against the continuance
in public office of any members of the Federal Communications Com¬
mission who vote to surrender more than fifty per cent of this
public property - radio - to profit making bodies.
As Resolutions Nos* 55, 171 and 200 dealing with the
important question of the radio, its regulation and the necessity
of maintaining its freedom so that this great avenue of communica¬
tion may be used for public information, as well as entertainment,
your Committee recommends that this convention instruct the
Executive Council to prepare dramatization of Labor History, state¬
ments of the principles and purposes of the American Federation of
Labor, organization addresses and other addresses dealing with
the problems of Labor for electrical transcription so that these
will be available to all broadcasting stations.
Your committee further recommends that the Executive
Council be instructed to petition the Federal Communications
Commission so that fifty (50) per cent of all radio facilities
will be allocated to organizations or to associations operating
upon a non-profit basis and that should it become necessary to
accomplish this purpose that adequate legislation be introduced
in Congress.
The report of the committee was unanimously adopted.
The resolution (No. 122) offered to secure na.tional
cleared radio channel for WCFL is summarized in the following
manner in the last paragraph of the formal resolution:
RESOLVED, That the American Federation of Labor in convention
hereby petition the Federal Communicant ions Commission to recommend
to the Congress of the United States and also petition the Congress
of the United States to pass the necessary legislation to assign
or to have assigned the channel of 970 kilocycles as a clear
channel, with unlimited time and with power equal to the maximum
power assigned to any channel in the United States to the owner
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or owners of the broadcasting station or stations approved by
the recognized labor organizations, which, in the opinion of the
Commission, are most representative of Labor interests of the
United States, and not to issue any license or licenses for the
use of such frequency except with the written consent of such so
recognized labor organizations to any other person, association,
corporation, organization or co-partnership, excepting that the
license now granted to radio station KJR shall not be interfered
with so long as it does not interfere with any other station now
or to be hereafter established by said labor organizations on
said clear channel.
In recommending concurrence in the resolution, your
committee commends the courage, persistence and constructive,
far-sighted policy which led the Chicago Federation of Labor to
establish Station WCFL.
The report of the committee was unanimously adopted.
XXXXXXXXXX
COMPOSERS DENY MONOPOLY CHARGE
The names of Stephen Foster, Victor Herbert and popular
song writers and publishers of the present day are listed in the
defense that has been prepared for filing in Federal court in
answer to the charges of monopoly brought by the government against
the American Society of Composers, Authors and Publishers and
allied organizations, the New York Times reports.
The suit seeks to break up license-fee agreements
between the organizations and radio broadcasting stations, as
well as contracts regulating other use of copyrighted works of
their members.
Denying the allegations of the Attorney General, the
brief, which was drawn up by Nathan Burke.n, as attorney for the
defendants, outlines the purpose of the association, founded in
1914, "principally for the protection of writers and publishers
of musical works against the infringement of their performing
rights in their copyrighted works in all countries of the world,
and for the granting of licenses for and on behalf of its members
to perform for profit such works and to collect royalties for such
licenses. "
It points out that the membership is limited to those
in the musical field, and that the royalties collected are dis¬
tributed among its members.
Upholding its protection of members from "piracies" in
the amusement field, which have spread rapidly since the war, the
defense emphasizes that the individual is unable to cope with the
many infringements.
5
11/2/34
Foster, whose folktunes are still famous, lacked such
protection and "died a pauper", the brief declares. On the other
hand, Herbert, a member of the society, was able to protect his
interests by legal action in 1915. "The expense of this suit",
the brief adds, "was borne by all the members of the society.
Herbert alone could not have carried it to a successful conclusion. "
The advent of broadcasting, the defense explains, added
to the difficulties of fixing and collecting royalties, until the
present arrangement was made.
Denying charges that musical compositions have been kept
from radio broadcasting, the brief declares "That such musical
compositions are withdrawn only when the continued radio broad¬
casting of such numbers, if not restricted, would destroy the grand
opera or stage or symphonic rights of the members in such works",
adding that the society, "by virtue of the performing rights
obtained under its license agreements with its members, is bound,
in equity and good conscience, to do nothing that will destroy the
value of the rights reserved to such members. "
X X X X X X X X X
EDUCATIONAL- RELIGIOUS HEARINGS START AGAIN NOV. 7
Further information will continue to be gathered in
the form of testimony when the hearings on the educational and
religious reapportionment of broadcasting facilities proceed
again on November 7th.
Dr. Levering Tyson will appear either Wednesday or
Thursday in behalf of the National Committee on Education by
Radio. It is expected that Dr. Tracy Tyler, spokesman for the
educators, will offer testimony in rebuttal.
Although the official calendar has not been made up at
this date, it is expected the following will appear during the
next two v/eeks, the length of time it is estima.ted the hearings
will continue:
Edward Nockels for Labor; William Biederman, Christian
Science Committee on Publications, District of Columbia; W. B.
Dolph, NRA; Dr. E. Oppenheimer, Children’s Bureau, U. S. Depart¬
ment of Labor; Owen A. Keen, Post Office Department; Morse
Salisbury of the Agriculture Department; also representatives
of the Pan American Union, the American Red Cross and probably
of the War and Navy Departments.
X X X X X X X X
6
11/2/34
DECLARE CHAIN BROADCASTS HELPFUL IN VOLUNTARY WORK
Coming just now when the Federal Communications Commis¬
sion is considering the question as to whether Congress shall
allocate a fixed percentage of radio facilities to educational
and religious programs, the report on the survey made by the
National Advisory Council on Radio in Education and the Federal
Office of Education is very timely. The report is based upon a
questionnaire sent to national voluntary organizations and the
results were compiled by Dr. Cline M. Koon, Senior Specialist
in Education by Radio in the Federal Education Office.
Summary and conclusions of the survey are as follows:
"Forty-five national voluntary organizations out of a total
of 312 included in this study reported that they had broadcast
regular series during the past two years.
"One-third of the organizations reported that they had broad¬
cast occasionally.
"Approximately one-third of the organizations contemplate
broadcasting in the future.
"In a comparison of the types of organizations that have
broadcast in the past, educational agencies rank highest, with
over half of them having broadcast; social agencies, second, 46
per cent; religious, third, 41 per cent; health, fourth, 34 per
cent; civic, fifth, 33 per cent; and funds and foundations, sixth,
16 per cent.
"The principal purposes of broadcast by national voluntary
agencies are:
To familiarize the public with the aims of the organization.
To extend the services of the organization to the public.
To assist in national drives
To disseminate information gained by research and investig¬
ations.
To unify the work of the local chapters and the national
headquarters.
"The principal difficulties involved in utilizing broadcasting
by voluntary organizations are:
Lack of understanding of the advantages and limitation of
broadcasting.
Relations with owners of broadcasting stations
Relations with other similar voluntary agencies
Preparing and presenting effective broadcasts
Creating and serving the radio audience
"Radio broadcasting is admirably suited to assist in the pub¬
lic service work of national voluntary organizations. Not only
are chain broadcasts of service to the national headquarters, but
regional and local stations are also of service to the state and
local branches. Lack of understanding in the past has frequently
led to misunderstandings between voluntary organizations and ra.dio
stations, resulting in failure to work together.
• ''1 •
11/2/34
"The basis on which the broadcasting time is made avail¬
able to voluntary organizations may be cited as an example. It
appears that most of the time voluntary organizations have used
for broadcasting has been donated by the chains and individual
radio stations. The assumption is that the broadcast is to be in
the public interest and that the organization presenting it is not
anticipating any financial profit out of the broadcast. Without
doubt, this assumption is true in most cases, but there are all
degrees of public service just as the degrees of public service
of the organizations vary.
"Under the guise of public interest, certain organizations
with nice-sounding names, but purely selfish objectives, may se¬
cure free broadcasting time. It is obvious that such organiza¬
tions should be required to pay the full commercial rate and that
certain others with mixed motives should pay the actual cost that
the station or chain incurs in putting on the broadcast. It is a
significant fact that there does not appear to be any uniform
practice followed by radio stations in dealing with various types
of coluntary organizations. In the interest of the public, as
well as the radio stations and the deserving voluntary organiza¬
tions, stpes should be taken to improve present practices.
"Undoubtedly, it has proved mutually advantageous for radio
stations and deserving voluntary organizations to work in close
co-operation. The public service functions of the station can
be partially fulfilled in this way and public relations streng¬
thened. The reports indicate that broadcasting benefitted
national voluntary organizations in a number of ways in the past
and that its potential uses have only been partially explored.
"The evidence available indicates that the National Advisory
Council on Radio in Education has been doing very satisfactory
work as a "liaison" agency, as far as the financial limitations
of the Council would permit it to go. It has not been able, so
far, to extend its activities to all national voluntary organiza¬
tions that are entitled to consideration. Neither has the Council
been able to extend its activities much beyond the national
chains. It appears, therefore, that either the Council or some
other agency working along similar lines should be given ample
financial support to conduct further investigations and more fully
explore the potential uses of the radio in strengthening the
public service activities of national voluntary organizations.
By doing so at this time, it will be possible to give proper con¬
sideration to the radio interest of these public service agencies
during the formative years of our broadcasting system. Further
exploration along this line will strengthen the fiber of our
broadcasting system, and perchance, it will give the programs a
richer and finer flavor. "
In a foreword, Levering Tyson of the National Advisory
Council on Radio in Education, writes:
"The extent to which use is being made of broadcasting
facilities for various public service objectives is not realized.
There are those who contend that broadcasting in America is
merely a commercial enterprise. From some points of view, they
may be right. Undoubtedly the American system is a commercial
8
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i
11/2/34
system. In that commercial system, however, there are a great
many programs which are designed to meet the specific needs of
various public service institutions. The identity of this type
of program is lost in the welter of commercial advertising."
In his introduction, Dr. Koon said that radio broadcast¬
ing is the speediest means for the dissemination of information
and certainly is admirably suited to assist in much of the public
service work of national voluntary organizations. He, however,
added that "available data indicated that the lack of understand¬
ing of the proper functions of broadcasting and broadcasting
technique on the part of representatives of voluntary organiza¬
tions and the lack of understanding of the public service func¬
tions of the voluntary organizations by representatives of broad¬
casting stations frequently led to misunderstanding. "
The study is divided into four chapters. The first
chapter states the purpose of the study and briefly indicates
the procedure followed and the plan of the report. The second
chapter considers the nature and extent of broadcasting by various
■voluntary organizations. The third chapter analyzes the use of
broadcasting, including the purposes served and the problems
involved. A summary and conclusion in a fourth chapter complete
the study.
The work is captioned, "Some Public Service Broadcast'
ing" by Dr. Cline M. Koon, and it has been printed in booklet
form by the University of Chicago Press.
X X X X X X X X X
SAFEGUARD SOUGHT FOR POLICE RADIO
The Federal Communications Commission has stepped into
Baltimore to find out how lawyers and private towing trucks manage
to appear so suddenly on the scene of accidents to which police
cars had been directed by radio, according to an Associated Press
dispatch.
Police Commissioner Charles D. Gaither told police
officials this week that such interception of police calls by
private individuals wf s a violation of the lew. He instructed
police to cooperate with the Federal men in breaking up the
practice.
Police officials said certain garages end lawyers tuned
in one police calls and rushed to the scene of accidents reported
over the police broadcasts. Police said garage towing trucks and
lawyers sometimes arrived almost as soon as they did.
X X X X X X X
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I
11/2/34
FCC TO INVESTIGATE INTERFERENCE IN PINCHOT'S SPEECHES
The Federal Communications Commission has today made
public the following correspondence which deals with the
complaint of Governor Gifford Pinchot, of Pennsylvania, that
several times his speeches over the radio have suffered from
interference. The Governor* s letter of October 29th to the
Commission reads as follows:
11 My dear Judge Sykes:
"Last April a campaign speech of mine was cut off the air
on the ground that it was not received properly by KDKA in
Pittsburgh from the Harrisburg studios of WHP. Various charges
and countercharges were made by KDKA and by officials of the
American Telephone and Telegraph Company, but I do not know to
this day where or by whom the sabotage was committed. The
Pittsburgh newspapers took the matter up, with the result that
I broadcast the same speech over KDKA the next night without
additional charge.
"During the present campaign this sabotage has started again.
"On Thursday, October 18th, my speech at Charleroi through
Stations KQ,V, WHP, WIP, WGBI and WRAU was ruined by a loud buzz
from beginning to end of the speech. Listeners throughout the
State, I am told, were barely able to distinguish what I was say¬
ing. The lines were tested and shown to be clear immediately
before I began to speak. They were clear again immediately after
I ceased speaking, when the voice of another campaign speaker came
through as clear as a bell.
"I went on the air again at Erie on Friday, October 26th,
over a State-wade hook-up. The first five minutes of my speech
came through perfectly, but I am informed that the moment I men¬
tioned the ’Sugar Trust’ the buzz came on again.
"I do not believe I am called upon to submit in silence to
sabotage of this kind. If the voices of other speakers can be
delivered without trouble, it is beyond explanation that interfer¬
ence such as I have described should constantly happen to me.
"Night after night, wreek after week, month after month, pro¬
grams from all parts of the world are delivered to the homes of
thousands of Pennsylvanians without interference or trouble of any
kind, but not when I am speaking,
"I am entirely satisifed that it is your intention to see to
it that all proper communications are delivered clearly and fairly,
and I am confident I may count upon your help to set this matter
right. "
To which the Commission replied as of this date (Nov. 2) :
10 -
■m
■
11/2/34
"My dear G-overnor Pinchot:
"Permit me to acknowledge receipt of your favor of the 29th
ultimo, complaining of some interference over the radio to the
reception of your speech delivered at Charleroi on Thursday,
October 18th.
"The Commission en banc, this morning, has given considera¬
tion to the matter and has ordered a complete investigation to
be made, "
XXXXXXXXXX
TELEGRAPH HEARING TO BE HELD MONDAY, NOVEMBER 5
A hearing will be held Monday, Nov. 5th before the
Telegraph Division of the Federal Communications Commission
in line with its Order No. 10 which was an authorization to
make an inquiry into the provisions and effect of contracts
between telegraph carriers subject to the jurisdiction of the •
Communications Commission and the common carriers not subject to
the Communications Act of 1934,
Those who will appear and the order of their appearance
are: Western Union Telegraph Company, Postal Telegraph Cable
Company, Northern Telegraph; Intervening railroads, and others
interested.
XXXXXXXX
CANADIAN RADIO EXECUTIVE JOINS NBC
The appointment of R. M. Brophy , veteran radio executive,
as Assistant Manager of Station Relations of the National Broad¬
casting Company, is announced by Richard C. Patterson, Jr.,
Executive Vice-President of the company. Mr. Brophy, who resign¬
ed his position as Assistant General Manager of the Canadian
Marconi Company to join the NBC, has been connected with broad¬
casting since 1920, the year of the industry’s birth.
Mr, Brophy' s experience has embraced practically every
phase of the business. After becoming a licensed wireless opera¬
tor, hw went to work in the Canadian Marconi factory, then moved
on to the experimental laboratories and later held positions in
the service and sales departments. After rising to the post of
Sales Manager, Mr. Brophy was for eight years in charge of the
broadcasting activities of the Canadian Marconi Co, , as well as
set and transmitter sales and advertising.
In his new position with the NBC, Mr. Brophy will work
with Donald Withycomb, Manager of Station Relations.
XXXXXXXX
- 11 -
. r
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11/2/34
INDUSTRY NOTES:
Stations WCOA, Pensacola, Fla. , and WOC, Davenport, la. ,
have been added to the Columbia Broadcasting System. There are
now 102 outlets associated with the chain. Seven years ago, the
original Columbia, unit network consisted of 16 stations.
WCOA is owned and operated by the Pensacola Broadcasting
Co. in the San Carlos Hotel, has 500 watts power and broadcasts
on a frequency of 1340 kilocycles. WOC is owned by the Palmer
School of Chiropractic in Davenport, la. , and operations on
1420 kilocycles.
A financial report of the Crosley Radio Corporation for
the six months ended Sept. 30 shows a net profit after royalties,
depreciation, Federal taxes and other charges, $412,942, equal to
75 cents a share on 545,800 no-par capital shares, against
$169,805, or 31 cents a share, in six months enaed Sept* oO, 1933.
Quarter ended Sept. 30: Net profit, $72,274, equal to 13 cents
a share, iKxpxgv compared with $340,668, or 62 cents a share,
in previous quarter and $64,894, or 12 cents a share, in third
quarter of 1933, Sales for six months totaled $8,401,651,
against $4,633,578 in same period a year before.
A general expansion of the activities of the National
Broadcasting Company Artists Service is announced. One major
change in the set-up of the department, which is under the direc¬
tion of Ceorge Engles, Vice-President, will result in the separa¬
tion of the activities of Talent Supply and Management, and of
Talent Sales into two main divisions of Artists Service. D. S.
Tuthill is appointed Sales Manager to direct talent sales.
There will be a band booking division, a Hollywood
office for Artists Service and representatives for motion picture,
hotel and night club booking. Artists Service representatives
under the new arrangement also will make direct contacts with
advertising agencies and other clients of the company, and a
central booking office will be established within the department.
Mayor Laguardia has decided to continue the municipal
radio station, WNYC, as it is now operating on a non- commercial
basis. At the same time he expressed the hope that funds may be
found to provide modern instead of the present "obsolete" equip¬
ment for it.
The Committee, composed of Richard C. Patterson, Jr.,
Executive Vice-Presidnet of the National Broadcasting Company,
Chairman; William S. Paley, President of the Columbia Broadcasting
System, and Alfred J. McCosker, President of the Bamberger Broad¬
casting System reported that only two courses are open to the city.
The first, they asserted, is to continue the station as it now
functions, and the second is to "go into first-class operation. "
X X X X X X X X
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CONFIDENTIAL — Not for Publication
Heinl Radio Business Letter ____
WASHINGTON, D. C. ;
(£ '3b if $ [r
P WOV 7 1934
I UUNOV 7
INDEX TO ISSUE OF NOVEMBER 6, 1904,
High Fidelity Keynote At Rochester Engineers' Meeting . 2
Swedish News Broadcasts Subsidized . 5
Estimates 1904 Radio Advertising Expenditure $100,000, 000. ... 4
New All-Wave Sets Bolstering Up Business . 5
Newark Installs Ultra High Frequency Police System . 6
Estimates N. Y. Broadcasts Weekly Attendance at 55,000 . 6
New Organ For Radio City . 7
100 Special Trains Bring Visitors To Berlin Radio Show . 8
Cites I.R. E. Award To Armstrong . 9
WOR To Study Radio Effect On Climate And Living Things . 10
Sparks Fly In Broadcaster-Educator Exchange . 11
Cox Permitted To Move Station From Erie To Dayton . 12
NBC Reported Buying Remaining Half Of WMAQ . 12
No. 772
/
I
1
11/6/34
HIGH FIDELITY KEYNOTE AT ROCHESTER ENGINEERS' MEETING
High fidelity receivers and other technical topics of
the moment will be considered at the Rochester Section of the
Institute of Radio Engineers, November 12-14. Because of the
presence of Dr. C. B. Jolliffe, Chief Engineer of the Federal
Communications Commission, and other speakers of prominence, the
meeting will assume national importance.
The program follows:
Monday Morning, November 12
Technical Session
Iron Core Tuning Systems - A. Crossley, Consulting Engineer
High Fidelity Reproducers with Acoustical Labyrinths (With
Demonstration), B. Olney, Stromberg- Carl son Telephone
Mfg. Co.
Group Luncheon
Monday Afternoon
Technical Session
Automatic Reactance Control Systems
Charles Travis and Murray Clay, RCA License Laboratory
Putting Ultra-High Frequencies to Work (With Demonstration) ,
L. C. F. Horle, Consulting Engineer, and C. J. Franks,
Radio Frequency Laboratories
Diode Coupling Considerations, J. R. Nelson, Raytheon Pro¬
duction Corporation
.Inspection of Exhibits
Meeting of RMA Committees on Receivers and Television
Monday Evening
Group Dinner
Joint Session with Radio Club of America
Transmission and Reception of Centimeter Waves (With
Demonstration), I. Wolff, E. G. Linder, and R. A.
Braden, R.C.A. Victor Company.
Tuesday Morning, November 13
Technical Session
The Use of Cathode Ray Tubes in Receiver Distortion Measure¬
ments (With Demonstration), Henry W. Parker, Rogers
Radio Tubes, Ltd. , and F. J. Fox, Rogers Majestic
Corporation.
Converter Tubes at High Frequencies, W. A. Harris, RCA
Radio tron Company
Input Losses in Vacuum Tubes at High Frequencies,
B. J. Thompson and W. R. Ferris, RCA Radio tron Company
Group Luncheon
Tuesday Afternoon
Technical Session
New Equipment for the Radio Designer and Engineer,
C. J. Franks, Radio Frequency Laboratories
Detector Distortion, Kenneth W. Jarvis, Consulting Engineer
11/6/34
Tuesday Afternoon (Continued)
Inspection of Exhibits
Meeting of RMA Committee on Vacuum Tubes
Meeting of RMA Committee on Sound Equipment
Tuesday Evening
Stag Banquet
W. E. Davison, Toastmaster.
Entertainment.
Wednesday Morning, November 14
Joint Technical Session with RMA Engineering Division on
Radio Interference
Brief Discussions on Desirability of Reduction of Radio
Interference from the Viewpoint ofi
The Consumer - 0. H. Caldwell
The Public Utilities - J. O'R. Coleman
The Radio Manufacturer - L. F. Muter
The Radio Dealer - Benjamin G-ross
The Federal Communications Commission - C, B. Jolliffe
Summary - A. N. Goldsmith
Investigation and Suppression of Inductive Interference,
H. 0. Merriman, Radio Branch, Department of Marine,
Canada.
Group Luncheon
Wednesday Afternoon
Technical Session on Radio Interference (Continued)
Discussion by Interested Organizations on Promotion of
Interference Reduction.
XXXXXXXX
SWEDISH NEWS BROADCASTS SUBSIDIZED
News broadcasts over the network of some 15 principal
broadcasting stations is part of the Riksprogram regularly every
day of the week. Tidningarnas Telegrambyra (TT), a central news
organization for the entire Swedish press, broadcasts the most
important items of domestic and foreign news between the hours of
7:18 to 7:25 A. M. , and from 9:47 to 9:55 P.M. , or during a single
15-minute period, Osborn S. Watson, Commercial Attache at Stock¬
holm reports.
Remuneration is paid the Tidningarnas Telegrambyra by
Aktb. Radiotianst (Swedish Radio Service operating under Govern¬
ment charter) , according to a sliding scale based on the number of
radio-receiving licenses issued by the Government. At the present
time this income to TT is approximately 8,000 Swedish crowns a
month (about $3600).
The material used in the broadcasts is a resume of news
items in Stockholm afternoon newspapers, which is often repeated
in the newspapers of the following morning.
X X X X X X
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11/6/34
ESTIMATES 1934 RADIO ADVERTISING EXPENDITURE $100,000,000
The expenditure by advertisers for "radio time" of the
stations of the United States is estimated to exceed $100,000,000
in a defense filed in the Federal Court of New York in answer to
the charges of monopoly brought by the government against the
American Society of Composers.
"It was not until 1927 that the broadcasting stations
began really to sell their ’time’ to sponsors, and their sales
of 'time' to sponsors grew from $3,832,500 in the year 1927 to
$39,107,000 in 1932", the Composers’ brief sets forth.
"In a brief period of seven years, the people of the U
United States purchased radio receiving equipment at an expendi¬
ture averaging $495,873,000 per annum."
"The nearly six hundred broadcasting stations are
scattered all over the United States. They are owned and
operated by many different interests, and in some cases by huge
corporations. The preparation and conduct of a suit for infringe¬
ment of copyright is an involved' and expensive procedure, too
involved and too expensive to be undertaken by an individual
copyright owner. The disposition of the stations first, to deny
entirely the rights of copyright owners, and secondly, to openly
infringe them if these rights were not safeguarded by the Society,
was perfectly apparent. Had the Society not been available as an
instrumentality through which the musical copyright owners could
ascertain piracies and protect their rights as well as license the
legitimate public performance of their works, there can be no
doubt but that these rights in actual practice would have been
completely lost and the owners thus illegally deprived of their
properties. "
"In round figures, 80% of the time a station is 'on the
air’, it is broadcasting musical works. This spectacular and
unprecedented growth in the popularity of radio as a medium of
entertainment has changed the musical habits of the nation. Of
pianos, there were sold in the United States in the year 1925 the
total value of $93,670,000, but in 1931, this figure had shrunk
to $12,000,000. The sale of phonograph records in the United
States shrank, from 1925 to 1931, over 80% and by 1932, the
shrinkage had reached 90%, and today there is being sold something
less than 10% of the phonograph records that found a ready market
in 1925. In 1925 sales of phonographs totalled $22,600,000 but
in 1931 the sales had shrunk to $4,869,000, a shrinkage of about
75%. From 1925 to the end of 1931, the average sales of sheet
music shrank more than 70%, The broadcasters grew tremendously
in strength, financially and politically, whilst those who
created music grew poorer and poorer. It would have been
impracticable and impossible for an individual musical copyright
owner in such circumstances to have protected his rights. "
4
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11/6/34
In conclusion the Composers' brief, filed by Nathan
Burkan, alleged "that continued radio broadcasting of musical
compositions has a tendency to surfeit the public and to destroy
the popularity and value of musical compositions within a few
weeks after their publication; that dramatico-musical composi¬
tions currently successful upon the stage, are produced at a great
investment, sometimes as high as $200,000.00 or $300,000.00;
that if radio broadcasters were permitted, unrestrained and
unrestricted, to perform the musical compositions which are part
and parcel of such dramatico-musical works, the desire of the
public to attend such productions in the theatre would be extin¬
guished, and the value of the rights in said musical compositions
and dramatico-musical works would be likewise destroyed; and for
that reason the Society, at the instance of individual members
thereof, restricts from indiscriminate broadcasting, from time to
time, such musical compositions, in order to prevent destruction
of the rights therein and the rights of the members of the
Society therein. "
XXXXXXXX
NEW ALL-WAVE SETS BOLSTERING- UP BUSINESS
Although trade conditions in the radio industry still
leave much to be desired, the outlook has been improved by the
favorable reception accorded the new all-wave sets currently being
offered in various price ranges, says the Standard Statistics Coc
of New York currently.
"With the aid of satisfactory sales of the new models
indications are that distribution of sets during the present
quarter may reach the highest levels since 1929. In addition to
the encouraging increase in unit volume, there is a marked trend
tov\rard the higher-priced sets, which provide wider profit margins.
Earlier in the year sales of auto radio sets were of record pro¬
portions and prospects of this division for the Spring of 1935
are equally promising.
"The weakest situation in the radio industry is in the
tube division, where prices have been reduced repeatedly. In
some cases manufacturers claim that operating economies have made
the reductions possible, but other trade sources indicate that
profits have been sacrificed. The primary motive of the price
cutting is undoubtedly to induce the public to replace tubes more
frequently. It is doubtful if this result has been achieved.
"Television still remains in an uncertain state. There
is no clear indication that a practical device can be marketed on
a broad scale for home use, or that public purchasing power has
reached a point where there is any assurance of even moderate
demand for a set which would undoubtedly retail at a comparatively
high price. Broadcasting and communication divisions of the
industry have been a source of satisfactory profits and should
become increasingly important contributors to income. "
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NEWARK INSTALLS ULTRA HIGH FREQUENCY POLICE SYSTEM
The tip of a flag pole serving as an antenna, hollow
wires which like water pipes carry electricity without leaking,
and a quartz crystal scarcely thicker than a hair which acts as a
control by vibrating 5,000,000 times a second, are among the
features of the radio system just placed in operation by the Police
Department of the City of Newark.
The system jointly produced by the Western Electric
Company and Bell Telephone Laboratories uses an ultra-high fre¬
quency, 30,100 kilocycles. This is about 20 times higher than is
regularly assigned to the police and is within a new band tenta¬
tively assigned for police work by the Federal Communications Com¬
mission to relieve crowding in the medium bands. A leader in
opening up this band, Newark gains the advantage of radio opera¬
tion free from atmospheric disturbances and from overlapping with
other stations.
In addition to a main control room at headquarters,
duplicate controls together with the transmitter are located on
the 34th floor of the National Newark & Essex Bank Building, high¬
est building in Newark. Vacuum tubes in the transmitter multiply
the vibrations of the hair-thick crystal six times producing the
precise frequency required.
A ''concentric1' transmission line composed of one copper
tube within another runs to the roof, the outer tube preventing
the escape of any current and thus making the line "water tight".
The line runs up the inside of a 100-foot flag pole topped by a
22-foot brass tube which acts as the antenna 600 feet above street
level.
XXXXXXXX
ESTIMATES N. Y. BROADCASTS WEEKLY ATTENDANCE AT 55,000
Columbia network's two former legit houses in New York,
the Hudson and the Avon, will soon be catering to around 25,000
non-payees a week, according to Variety. "Web expects to have
within that time 24 programs originating from the two spots", the
publication goes on. "Together the houses seat slightly more than
2,000 persons. Total guestees at the NBC broadcasts in Radio City
average 30,000 a week.
"With CBS the top ticket demand is for the Fred Waring
(Ford) programs. What helps pull 'em to this event is the 30 to
45 minutes of added entertainment Waring unlimbers following the
regular broadcast. Rating the second biggest ticket call is the
Chesterfield series. Next three programs and in that order are
Casa Loma-Walter O'Keefe (Camel), George Givot (sustaining), and
Lud Gluskin-Block and Sully (Ex Lax)."
X X X X XX X
- 6 -
11/6/34
NEW ORGAN FOR RADIO CITY
What is described as the most unusual pipe organ in the
world is nearing completion in one of the big NBC studios in
Radio City. Specially designed for broadcasting by Aeolian-
Skinner, in cooperation with NBC engineers, the new three-manual
instrument will reproduce an almost unlimited variety of orchestral
effects while matching in beauty of tone and flexibility of opera¬
tion the organs of the greatest cathedrals.
The new NBC organ is being installed in studio 3B, one
of the largest Radio City studios. Its three keyboards of 61 notes
each, and its 20 pedals, magnetically operate 1024 pipes which
are housed in a special organ loft at one end of the studio be¬
hind two sets of shutters, also electrically controlled. Chimes,
which can be played on all three manuals, and by the pedals, and
a harp also are included in the banks of stops on each side of the
console.
Every combination of string and woodwind orchestral
effects can be produced at a touch of the fingers, the many sets
of couplers and plungers beneath the keys of each manual permit¬
ting instantaneous variation of the thousands of effects and
combinations.
A huge electric blower, which, like the entire studio
itself, is set on springs, sends washed air to the pipes. More
than 400 wires lead from the organ to the magnetic switchboard
to hook up each of the stops in scores of combinations.
Installation of the organ was simplified, because many
of the problems of acoustics ordinarily encountered had been
worked out by NBC engineers when the Radio City studios were
built a year ago. At that time organ lofts we re built into three
of the largest studios and the auditoriums themselves were so
designed that the organ music could be picked up by the micro¬
phones without loss or distortion. The engineers and the Aeolian-
Skinner organ experts combined their knowledge and experience to
provide well-nigh perfect settings for the superb instruments to
be installed in these studios, of which the one now being complet¬
ed is the first.
Special organ concerts will be broadcast and network
audiences will hear many world famous organists in recitals;
also the big instrument will be an important adjunct in other
programs with orchestras and choral ensembles,
XXXXXXXX
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100 SPECIAL TRAINS BRING VISITORS TO BERLIN RADIO SHOW
Attendance at the German Radio Exhibition was "over
300, 000.” Official sources do not give a more accurate figure.
One hundred and eight special trains brought visitors to the
Berlin show, and of the total number of visitors, 46 percent
were from outside Berlin. Compared with attendance figures at
Radiolympia, the radio show in London, Berlin had a lower average.
Olympia was open for 9 days, with a total attendance of 240,000,
while the Berlin exhibition was open for 13 days. The Radiolympia
daily average was 26,666, and Berlin's 23,063. Within an hour
of the opening, one firm at the London show had booked an order
fort300,000 worth of receiving set and equipment. This is believ¬
ed to be the greatest order ever placed in England.
Business done at Berlin was much greater than for last
year, but no complete figures are available. One firm sold
40,000 sets in 1933, and over 100,000 this year.
The number of licenses issued in Germany showed a
marked increase during the month of August, which is no doubt a
result of the propaganda in connection with the Berlin Radio
Exhibition. The total number of listeners was 5,440,466 on
September 1, 1934, an increase of 82.64? over the figure for
August 1. The total includes 428,836 licenses which were issued
free of charge, 294,460 of which were to unemployed persons.
Also there was a rise in the number of radio sets in
England. Approximately 260,300 wireless receiving licenses were
issued during August, it was announced by the Daily-Telegraph,
September 12, 1934. The figure represents a net increase of
35,180, The total number of licenses in force at the end of
August was 6,428,960, compared with 5,654,400 at the correspond¬
ing date a year ago.
The French Radio Show recently held in the Grand Palais
at Paris likewise apparently attracted considerable public atten¬
tion. However, the sixth Brussels Radio Show, which opened on
September 1 for a period of 10 days, has shown only a partial
success. The attendance was up to expectations but according to
G. R. Canty, Acting Commercial Attache at Brussels, the volume of
sales was not very satisfactory.
The conspicuous absence of complete foreign sets indi¬
cated very clearly that the new Belgian duty rates, which entered
into force in February of this year, have had a disastrous effect
on the import of completed sets from abroad. As a matter of fact,
most of the exhibits were of local origin, or, at least, were
mounted in Belgium partly from imported parts. Therefore, at
first glance, it appears that the American production, which pre¬
dominated 2 years ago and was still important even last year, has
disappeared from the market, Attache Canty observed. In fact, as
an indication that the American trade is shifting from completed
sets to accessories, it wasnoted that practically all tubes and
important parts used in the mounting of these local sets were of
American or German manufacture.
XXXXXXXX
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11/6/34
CITES I.R.E. AWARD TO ARMSTRONG
John V. L. Hogan, well known radio engineer, addressed
the following letter to the New York Times :
"The letter printed in the Times from Lee de Forest on
the recent action of the Supreme Court in the de Forest- Armstrong
controversy is particularly interesting because it is there sug¬
gested that a straw vote among the engineers familiar with the
development of the regenerative invention would show the general
view to be that the job had been done by de Forest and not by
Armstrong.
"In making this suggestion Dr. de Forest seems to have
overlooked the fact that such a straw vote has already been taken.
Last May, soon after the Supreme Court held that de Forest had
made this invention, Armstrong returned to the Institute of Radio
Engineers the medal of honor that had been awarded to him as a
recognition of his contributions in this field.
"The Board of Directors of the Institute devoted a
special meeting to a review of the situation, and thereupon, at
the convention of the Institute in Philadelphia, refused to accept
the return of the medal and reaffirmed its earlier award to
Armstrong. This action was unanimous on the part of the Board
and was enthusiastically acclaimed by the hundreds of engineers
present at the convention.
"There is no doubt that the great majority of well-
informed radio engineers regard Armstrong and not de Forest as
the inventor of the regenerative circuit. "
A few days later the following letter appeared in the
Times from Dr. Lee de Forest:
"Letter No. 3 in the Pupin series reminds me of an
interesting incident occurring in March, 1914, during a meeting
of scientists at the Bureau of Standards, Washington. On that
occasion i met Dr. Langmuir for the first time. I was then making
the first public exhibition of the ’beat-note’ phenomenon, whereby
two audion circuits, oscillating each at a slightly different
radio-frequency, produced an audio- frequency which I then ampli¬
fied in a two- stage audion amplifier to a loud-speaker.
"I carefully explained the operation of this arrange¬
ment to Dr. Langmuir, who very graciously vouchsafed the opinion
that ’when you put the grid in that tube you did something worth
while. 1 If Dr. Langmuir is now correctly quoted by Professor
Pupin, it . would indicate a lamentable lapse in memory on the part
of the originator of sundry "Greco-Schenectady ' sobriquets for
the three-electrode tube.
9
i ' >S ;
11/6/34
"During that same Washington exhibition, while I was
demonstrating the siren beat-note phenomenon, Dr. Pupin rushed
up and fairly shouting at me demanded: “What right have you to
do this? That’s Armstrong ' s.' 1
"I was totally flabbergasted by this astonishing out¬
burst; for until that moment I had no idea just what was the
Armstrong invention, concerning which there had been sedulously
maintained such plutonian secrecy on Morningside Heights.
"From subsequent events, extending now for the past
twenty years, it would seem that Dr. Pupin* s choler has not been
reduced by a single decibel.
"Regarding Dr. Leonard Fuller, the printed records of
his testimony in the case will show that he himself called atten¬
tion to my April, 1913, entry in the Palo Alto notebooks, wherein
I had written: “This day I got the long-looked- for beat note.*
"Dr. Fuller was not with the Federal Telegraph Company
during the preceding Summer when I first discovered the feed¬
back circuit; otherwise his testimony concerning that date would
doubtless have been equally convincing. Yet Dr. Pupin now states
that Professor Fuller “supported Armstrong.'
"Despite all epistolary efforts, con and pro, the
thoughtfully unbiased decision of the United States Supreme Court
still stands.' "
XXXXXXXXX
WOR TO STUDY RADIO EFFECT ON CLIMATE AND LIVING THINGS
When the new 50,000-watt transmitter of WOR goes on the
air early in December, it will have a corps of scientists from
universities to conduct observations over a period of more than a
year to ascertain the effects on human, animal and vegetable
life. Furthermore, experts will carry on a long series of tests
on meteorological conditions in the vicinity of Carteret, N. J. ,
the site of the new transmitter, to discover just ?uhat effect the
powerful radio waves are to have on the weather; whether or not
they produce humidity or aridity, rain or shine, cold or heat,
or whether they have absolutely no effect at all, as is claimed
by many scientists.
Engineers and other plant-attendants will be examined
before they go to work at the new transmitter. At regular intervals
they will be examined again to see if, as has been asserted, the
high frequency current affects the faculties, growth, glands and
bodily functions. The New Jersey State College of Agriculture will
install equipment around the station for the scientific study of
the current effects on plant growth and plant-parasites. The ground
beneath the antenna is to be so wn with vegetables and flowers. A
plot of ground of the same ares, miles away will be planted with
the same seeds and both plots will be given the same care. Results
of these and other observations will be published quarterly.
X X X X X X X X - 10
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11/6/34
SPARKS FLY IN BROADCASTER- EDUCATOR EXCHANGE
A sharp clash has developed between the broadcasters
and the educators as a result of an appeal by Joy Elmer Morgan,
Chairman, National Committee on Education by Radio, to educa¬
tional authorities of the country that they back up the plea of
Floyd W. eeves, of the Tennessee Valley Authority, for govern¬
ment ownership of radio. Philip Loucks, Managing Director of the
National Association of Broadcasters in a sharp retort called
attention to the fact that Mr. Morgan had addressed his letter
to educators, accompanied by the statement of Mr. Reeves, three
days after the Reeves testimony had been "repudiated11 by Arthur
Morgan, Chairman of the TVA.
Another angle which broadcasters declared inconsistent
with Joy Elmer Morgan’s endeavoring to stir up sentiment in favor
of government radio ownership was that when he testified before
the Federal Communications Commission, Mr. Morgan stated that his
Committee has never contended for changing broadcasting in the
United States to a completely government owned system "contrary
to statements often made by commercial interests, "
In transmitting the testimony of Mr. Reeves, who advo¬
cated government ownership of broadcasting, to educators, Joy Elmer
Morgan attached the following letter to educators:
"To Those That Believe America Is Entitled to Better
Radio Service Than It Is Getting: A federal chain of radio sta¬
tions is recommended by the Tennessee Valley Authority in the
attached article. This proposal coming from one of the foremost
organizations in American life is unusually consistent and full of
promise. It will receive favorable consideration if enough people
demand it.
"Will you not write at once, putting the matter in your
own way, urging the Communications Commission to carry out this
recommendation? Address your letter to Hon. Hampson Gary, Chair¬
man of the Broadcasting Division of the Federal Communications
Commission and ask that it be made a part of the official record
of the hearings now in progress. Send a copy of your letter to
your representatives in Congress and copy to the National Committee
on Education by Radio. "
Upon learning of this appeal, Mr. Loucks addressed the
following letter to Mr. Morgan:
"On October 26 on the stationery of the National Com¬
mittee on Education by Radio, you wrote a letter signing yourself
as Chairman to "Those That Believe America Is Entitled To Better
Radio Service Than It Is Getting", in which you enclosed a state¬
ment made by Mr. Floyd W. Reeves, Director of Personnel of the
Tennessee Valley Authority, before the Federal Communications
Commission.
11 -
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11/6/34
"While your letter was addressed three days after the
Communications Commission inserted in the record a telegram from
Mr. Arthur E. Morgan, Chairman of the Board of Directors of the
Tennessee Valley Authority, repudiating the testimony of Mr.
Reeves, you did not call attention to Mr. Morgan’s telegram,
repudiating this testimony of Reeves, his subordinate.
"In all fairness the National Association of Broadcasters
requests that you address a letter to all those who received com¬
munication of October 26th with the testimony of Reeves attached
explaining that Chairman Arthur E. Morgan repudiated the testi¬
mony of Mr. Reeves and that you enclose a copy of the record of
the Federal Communications Commission, which I am enclosing,
setting forth the action of Mr. Arthur Morgan. "
XXXXXXXX
COX PERMITTED TO MOVE STATION FROM ERIE TO DAYTON
The Federal Communications Commission reconsidered, and
by unanimous consent, granted former Governor James M. Cox, of
Ohio, onetime Democratic presidential candidate, permission to
move Station WLBW from Erie, Pa. to Dayton, Ohio. The Commission
had previously set the case for a hearing.
Governor Cox had bought the Pennsylvania station to
operate in connection with his paper, the Dayton News. The
Commission’s reconsideration was seen as a courtesy to Mr. Cox
personally and also to Col. Thad H. Brown, of Ohio, Vice-Chairman,
who, though a Republican, was said to have owed his reappointment
largely to the good offices of Governor Cox, an old friend.
XXXXXXXX
NBC REPORTED BUYING REMAINING HALF OF WMAQ
The National Broadcasting Company, already half owner
of the station, is reported to have bought the Chicago Daily News'
half of Station WMAQ, in that city. The price was said to be in
the neighborhood of $500,000.
XXXXXXXX
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2400 CALIFORNIA STREET WASHINGTON, D. C.
_
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF NOVEMBER 9, 2 904.
Election To Cause Communications Committees Shuffle . 2
Coast Guard Appoints New Communications Officer . 3
Roy McCanne, Stromberg- Carl son Head, Dies Suddenly.. . 4
Russia Going In Big For Broadcasting . 4
An Englishman Sizes Up Our Broadcasting System . 5\
Notable Increase In Cuba's Radio Imports . 6
Labor Presses 50% Educational-Non-Profit Channels Demand . 7
Canada Takes Kindly To Auto Radios . 8
An Election - And The Yankee Network News Service.... . 9
A New All-Wave Line Noise Filter . 10
Paris Attempts To Control Loud-Speakers . 10
Marks Of Origin For British Radio Imports . 11
Sound Is Combined With Electric Train Headlight . . . 11
Applications Granted By Communications Commission . 12
No. 773
ELECTION TO CAUSE COMMUNICATIONS COMMITTEES SHUFFLE
As a result of the election and other contingencies,
changes in the Committees of Congress governing the Federal Com¬
munications Commission may almost amount to a new deal. The
re-election of Senator Burton K. Wheeler (D), of Montana, may mean
that if Senator Ellison D. Smith (D), of South Carolina, declines
the position, as many believe, that Senator Wheeler will head the
Senate Interstate Commerce Committee which has complete jurisdic¬
tion over Communications matters in the upper body.
The Chairmanship was made vacant by Senator Dill, of
Washington, declining to run for re-election. Senator Smith is
next in line but having already served as Chairman of the Committee,
it is believed he may prefer to remain as head of the Senate Com¬
mittee on Agriculture and Forestry, which position he now holds.
Senator Wheeler, who was the Progressive Party candidate for Vice-
President with Senator Bob La Follette, is said to be far more
advanced in his view than Senator Dill was, and furthermore is
reported to be very, very much interested in his work on the
Interstate Commerce Committee and therefore is believed he would
look with favor upon advancement to the Chairmanship.
Because of election casualties, added to by Senator
Dill’s resignation, there will be at least five vacancies to fill
on this committee. Senator Fess, of Ohio; Senator Kean, of New
Jersey, and Senator Hatfield, of West Virginia, all Republicans,
were swept out, as was Senator W. H. Thompson, of Nebraska,
The next Congress will bring with it the question as to
whether or not communications in the House will be under the
Committee of Merchant Marine and Radio, of which Judge Schuyler
Otis Bland, of Virginia, is Chairman, or the Committee on Inter¬
state and Foreign Commerce headed by Representative Sam Rayburn,
of Texas. Up to the past session, the former Committee had looked
after radio and wireless, and the latter wire telephones and tele¬
graph. There was quite a tilt about this between Judge Bland and
Mr. Rayburn, but the chances are the latter Committee will win out.
If so, Communications people will be interested in the
dark horse speculation of Representative Rayburn for Speaker. It
is about a 50 to 1 shot but Mr. Rayburn stands high with President
Roosevelt and if he should land the Speakership, it will leave the
Interstate Commerce Committee Chairmanship to Representative G-eorge
Huddleston, of Alabama, who was among those who were just re-elected
to Congress.
Compared to the size of that Committee, the election
casualties in that group were very light. Among the missing report
ed at this time are Representatives Jacob L. Milligan (D), of
2
11/9/34
Missouri, E. W. Marland (D), of Oklahoma, and Francis T. Maloney(D),
of Connecticut.
There were heavier losses on the House Merchant Marine
and Radio Committee. These included Representatives George W.
Lindsay (D), of New York; Oscar L, Auf der Heide (D). of New Jersey;
John Barrow Young (D), of Kentucky; A. C. Wilford (d), of Iowa,
and George W. Edmonds (R), of Pennsylvania.
The election brings back to Washington, Senator T. G.
Bilbo, of Mississippi (D), toting a large blunderbuss with which
he will attempt to prevent the confirmation of Judge E. 0. Sykes,
Chairman of the Federal Communications Commission. When Governor
of Mississippi, Bilbo appointed Sykes to the State Supreme Court.
Later, Senator Stephens, who was subsequently defeated by Bilbo,
was responsible for the appointment of Mr. Sykes fo the Radio Com¬
mission, and reappointment to the Communications Commission. In
the recent election, however, Judge Sykes guessed wrong and sup¬
ported Senator Stephens as against Governor Bilbo. The latter
has already declared he will "spend his entire six years term,
if necessary", to fight the confirmation of Judge Sykes.
The next Congress will find Senator Wallace H. White, Jr.
of Maine, the best posted man on radio and communications in the
Senate. Senator White was co-author of the 1927 Radio Act.
Although a Republican and in the minority, Senator White will, no
doubt, be freely consulted by his colleagues.
It is an anomaly that during the Hoover and Coolidge
administrations, Senator Dill, a Democrat, was the man looked to
by the Senate for its radio advice, and that in the Roosevelt
administration, from now on, the Democrats in the Senate will
turn to Wallace White, a Republican, to guide them.
XXXXXXXX
COAST GUARD APPOINTS NEW COMMUNICATIONS OFFICER
Commander M. J. Ryan has been assigned to duty as
Chief Communications Officer of the Coast Guard. He succeeds
Lieut. -Commander E. M. Webster, who retired November 1st, and is
now a member of the Engineering staff of the Federal Communica¬
tions Commission.
XXXXXXXX
3
r n:J
11/9/34
ROY MO CANNE, STROMB ERG- CARLSON HEAD, DIES SUDDENLY
The death of W. Roy McCanne, President of the Stromberg-
Garlson Telephone Manufacturing Company, at Rochester, N. Y. , last
Monday night was a great shock to the radio manufacturing industry.
Mr. McCanne played golf last Saturday with his usual Saturday
afternoon foursome. However, Sunday night he suffered a cerebral
hemorrhage and was unconscious until the time of his death about
midnight Monday. His funeral was held in Rochester Wednesday
afternoon.
Mr. McCanne was 55 years old and born in St. Louis. He
had been very active in the work of the Radio Manufacturers1
Association and for the past three years a Director of that organ¬
ization. He was Chairman of the RMA Code Committee in 1933.
"Mr. McCanne was a man of unusually high business ethics
and ideals and a lovable character", said Bond Geddes, Executive
Vice-President of the Radio Manufacturers' Association. "His
passing is a great loss to our association.
"Mr. McCanne, in addition to his large manufacturing
interests, was active in Rochester civic life and was associated
with the late George Eastman and others in many philanthropic
enterprises. Also, Mr. McCanne, himself being a great music
lover, had much to do with the development of the Rochester Civic
Symphony Orchestra. "
The musical taste of Mr. McCanne is said to have been
responsible for the development of the Stromberg-Carlson sets
along musical lines. He regarded a radio set more as a musical
instrument and with him the tonal quality was always the big thing.
This was said to have been the guiding reason that Mr. McCanne
recently had Station WHAM, at Rochester, owned by the Stromberg-
Carlson Company, equipped for high fidelity.
XXXXXXXXX
RUSSIA GOING IN BIG FOR BROADCASTING
During the third quarter of this year twenty new radio
stations are to be constructed in various parts of the Union of
Soviet Socialist Republics. Their capacity ranges from 1 to 35
kilowatts, according to the Economic Review of the Soviet Union,
which observes:
"Data recently published by the Union of German Engineers
reveals there were at the end of 1933 all over the world 1453
radio broadcasting stations with a total capacity of 6422 kilo¬
watts. In Europe there were 270 stations with a capacity of 4037
kilowatts. The Union of Soviet Socialist Republics occupies first
place in Europe in radio broadcasting, having 67 stations with a
capacity of 1563 kilowatts. "
X X X X X X X
- 4 -
11/9/34
AN ENGLISHMAN SIZES UP OUR BROADCASTING SYSTEM
Quite a good deal has been written about what we think
of the British system of broadcasting. The New York correspondent
of the Manchester Guardian turns the tables and tells us what he
thinks of our system. The correspondent writes:
"The radio broadcasting industry in the United States
is now preparing for the battle of its life. There is a rising
tide of discontent with the conditions under which broadcasting
is carried on, which seems likely to be reflected in new and
drastic legislation in the fairly near future. This discontent
arises primarily from the fact that broadcasting in America is
chiefly a commercial enterprise and that much of the matter heard
on the air is advertising.
"The economic basis of broadcasting is a simple one.
Some individual or corporation obtains from the Federal Government
a license for a specified wave-length and a specified city and
erects a station. The next step is to persuade merchants, or
others who have something to sell, to purchase ’time on the air',
either on one station or a network. No programme, of course, con¬
sists exclusively of advertising; as a rule, music is offered,
comedians make jokes, but at frequent intervals an announcer inter¬
rupts the proceedings to point out the merit of the product which
is being advertised. Naturally, the ’sponsor’ for the programme,
as he is delicately described, gives just as much advertising as
he dares without causing the radio set to be turned off. There
seems to be hardly any restriction on the sort of product which
is permitted to purchase time, and a large part of all broadcast¬
ing is devoted to patent medicines, breakfast foods, and the like.
"An incidental annoyance arising from this system is
that the programmes offered are extremely short. Time on the
air is expensive; control of one of the national networks may
cost LI, 000 an hour or more. The advertisers have learned that
a brief ’appearance’ is as useful as a longer one, and it is
often the case that for two or three successive hours hardly any
programme lasts longer than fifteen minutes. Last winter, for
example, a cigarette manufacturer engaged Mr. Leopold Stokowski
and a group of musicians of the Philadelphia Orchestra, one of
the finest in America, to play serious music, written by the
great masters, during a programme of this length. There were
some music-lovers, at least, who felt that an orchestral concert
thirteen minutes long (excluding the time taken to extol the
merits of the cigarettes in question) was insufficient to create
the tranquil mood necessary for the enjoyment of good music.
"There are many individuals, also, who are so much
annoyed by being compelled to listen to advertising that they
refuse to have anything more to do with wireless. Indeed, it is
reported that the advertisers are themselves becoming frightened
over this development.
5
11/9/34
"The shortcomings of American broadcasting are as serious
in the fields of education and presentation of news as they are in
music. The broadcasters are for ever issuing reports which attempt
to show that they do a great deal in the way of education, and
from time to time they assist the creation of committees of well-
known public personages to encourage such activities. In fact,
however, these efforts come to singularly little. It would be
almost inconceivable that a broadcaster should reject a commer¬
cial programme during one of the best hours of the day in order
to offer educational material; and the result is that such broad¬
casting is usually tucked into an odd fifteen minutes here and
there at a time when so few persons are listening that no adver¬
tiser cares to reach them.
"Hardly anything is done in the way of printed matter
to supplement serious broadcasting; the United States has no
equivalent for the ’Listener', and the 'radio magazines' are
cheap popular periodicals filled with gossip about individual
performers, as bad as, or worse than, the motion-picture 'fan
papers. '
"As I have already suggested, there is a growing revolt
against the conditions of American broadcasting. A movement has
gained much support which would require Congress to set aside
definite wave-lengths for stations operated for educational pur¬
poses. It has also been suggested that each commercial broad¬
caster should be required to give a certain percentage of time
to non- commercial material. There is no reason to believe, how¬
ever, that such a plan would result in material superior to that
which is supplied at present. A movement is therefore gaining
ground either for a Government-owned chain of stations, to broad¬
cast non-commercially in competition with existing systems, or
for outright Government ownership and operation of all facilities.
If the latter were the case, probably 500 stations or more would
be discontinued, since not more than 50 stations at most would
be necessary to ensure good reception in all parts of the country."
XXXXXXXX
NOTABLE INCREASE IN CUBA'S RADIO IMPORTS
A marked increase in Cuba's imports of radio receiving
sets during the current year is reported by Commercial Attache
Walter J. Donnelly, Habana.
In the first nine months of 1934, the report points out,
Cuba imported 14,359 radio sets through the port of Habana, which
total exceeded by 11,834 sets the imports through all ports during
1933. It is of interest to note, the American trade envoy states,
that during the first nine months of this year, 93 different makes
of radio sets were imported, mostly American, while last year the
trade was limited to 20 makes. The tendency has been for the
number of makes to increase, indicating that more radio manufactur¬
ers are selling in the Cuban market, either direct or through
agents.
XXXXXXXX
- 6 -
J
11/9/34
LABOR PRESSES 50$ EDUCATIONAL-NON-PROFIT CHANNELS DEMAND
Through William C. Hushing, National Legislative repre¬
sentative of the American Federation of Labor, resolutions of the
Federation adopted at their San Francisco meeting recently were
presented to the Broadcast Division of the Federal Communications
Commission at a resumption of the hearings on whether or not
additional radio facilities shall be allocated to educational,
religious, labor and other non-profit broadcasting stations.
One of these resolutions provides that the American
Federation of Labor undertake the preparation of at least thirty
programs each year, such as dramatization of labor history,
organization speeches and speeches to convince the public of the
importance of the American labor movement in the upbuilding and
maintenance of the American standard of living, and that the
Executive Board make these available for presentation by eieotrical
transcription to the general public through the various broadcast¬
ing stations.
Another resolution was that the A.F. of L. petition the
Communications Commission and Congress, insisting that not less
than 50 percent of all radio facilities be allocated to organiza¬
tions and associations operating on a non-profit basis. A third
provides that the American Federation of Labor record its militant
opposition to the allocation of more than fifty percent (,of this
public property" (radio facilities) to organizations operating for
private profit and "that we register our protest against the con¬
tinuance in public office of any members of the Federal Communica¬
tions Commission who vote to surrender more than fifty percent of
this public property - radio - to profit making bodies. "
This last resolution was interpreted to mean that the
American Federation of Labor would fight the confirmation in January
of any Communications Commissioner who opposed their resolutions,
A clash was precipitated at the hearing by Dr. Tracy F.
Tyler of the National Committee on Educa.tion by Radio, when he
said that B. M. Webster, Jr. had explained the "present jumbled
mess" by saying, "All this can be held at the feet of the now
happily defunct Radio Commission. That body devoted six years of
existence to trivial adjustments, relatively petty administrative
matters, and was the victim of political maneuvering. It left
the American system substantially as it found it - a chaos. "
"Are you using that quotation of Mr. Webster as the
basis of your thought on this matter; for what you are attempting
to develop?" Commissioner Thad Brown, who was a member of the old
Radio Commission inquired with some a.sperity.
"No", replied Dr. Tyler, "I am merely pointing out there
has been some complaint. I would not endorse it whole-heartedly.
That is off the record. "
- 7 -
11/9/34
"My statement is on the record”, Colonel Brown retorted,
"and I assume yours will also be. "
"Whether or not the Radio Commission was guilty, as
charged, the circumstances to which I have alluded are unfortunate",
said Dr. Tyler, referring to the fact that Colonel Brown and
Judge Sykes, who are to have a voice in deciding the present case
were both members of the Radio Commission. "They had the effect
of placing the Broadcasting Division under a handicap before its
members had even assumed their duties. As a result, not only is
broadcasting on trial, but the Communications Commission itself
is on trial.
"A realization of the situation should result in an
attempt on the part of the members of this Division to conduct
themselves with such scrupulous impartiality as to command the
confidence of Congress and the American people. Gentlemen, you
are faced with a difficult task. "
XXXXXXXX
CANADA TAKES KINDLY TO AUTO RADIOS
The Canadian radio industry is benefiting by the improved
economic conditions prevailing in the Dominion, a report to the
Commerce Department from its Ottawa office shows.
September sales of automobile radios, the report shows,
were nearly three times that reported in August.
Reports of the Radio Manufacturers’ Association of
Canada show that unit sales during September increased by nearly
100 per cent over August while list values advanced approximately
150 per cent. Substantial improvement in the domestic demand for
selective and all-wave sets is evident in the detailed sales
figures, the report points out. Demand for selective sets doubled
in September and 2,215 all-wave console sets were sold as compared
to less than 600 in August. The demand for radio receivers which
permit foreign reception has not been confined to alternating cur¬
rent receivers as battery units with wide wave length have been
moving exceptionally well.
The improvement in Canadian radio business is also reflec¬
ted in government sales of radio licenses* In the first six months
of the fiscal year, April to September, inclusive, 548,249 licenses
were issued by the Department of Marine, a gain of approximately
45,000 as compared with last year’s figures. Ordinarily, the
report states, 75 per cent of radio licenses sold during the fiscal
year are reported in the first six months of that period.
XXXXXXXX
- 8
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AN ELECTION - AND THE YANKEE NETWORK NEWS SERVICE
The Yankee Network News Service broadcast of election
returns was as great a sensation as the plurality of Governor-
elect Curley", according to a statement issued by the Service.
"Yankee Network swept the State of Massachusetts, and passed
precise, accurate returns on to the citizens of the Bay State
far in advance of any other news gathering organization", the
statement continues.
"Under the directrorship of Leland Bickford, acting
Editor-in-chief of the Yankee Network News Service, a force of
175 men covered the entire State and its 1716 precincts.
"When the Massachusetts primaries were held in September,
election returns were broadcast in Boston, only by the Yankee Net¬
work. The election of November 6 was broadcast over two other
Boston stations by two local newspapers, one of which boasted
that they would give out election returns faster than any news¬
gathering organization in the City of Boston. At 6:15 P.M. the
Yankee Network News Service retaliated with the following announce¬
ment: ' The Yankee Network News Service will post one thousand
dollars that its returns will be on the air faster than this
paper can get them to you in its broadcast. '
"No one has attempted to collect the thousand dollars!
"At 7:15 the Yankee Network recognized that the State
vote would show a plurality for Curley, and announced congratula¬
tions to the next Governor.
"An Open House entertainment was held in the WNAC-WAAB
studios at 11:00 o'clock, welcoming the newly elected candidates,
and giving them an opportunity to speak to their constituencies.
Imprompty entertainment was provided by Alice O'Leary, Karl Moore,
Donald VanVfert, Ra.nny Weeks, and others.
"Studio #1 of WNAC was set up as a city room for the News
Service. Typewriters and tabulating machines were clicking, a
dozen or more telephones were jangling simultaneously and forty
hard pressed workers were bustling about the studio, but over all
the din rose the voices of Linus Travers and Jack Ingersoll, talk¬
ing ceaselessly into their microphones, giving listeners accurate
returns the moment they we re telephoned in, proving that for the
immediate dissemination of news, radio is without a peer.
"Every possible precaution was taken to insure accuracy
and speed. Tabulators working in the YN headquarters in Spring-
field, Worcester, New Bedford, Lowell, and Brockton, counted
votes as they came in from towns and cities in their territories,
then telephoned results to Boston. These results were checked
against the known voting strength of the districts before they
were assumed to be correct. Returns from individual precincts
throughout the State were read as rapidly as they reached the
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11/9/34
announcer’s desk. Trained auditors then made recapitulations at
frequent intervals, so that listeners were momentarily informed
of the progress of the ballot, not only in precincts, wards , towns
and cities, but were given the total number of votes polled for
all candidates every fifteen minutes.
"That the Yankee Network News Service did an excellent
piece of work in covering the election was manifested in the
thousands of favorable responses that came from enthusiastic
listeners throughout the State. "
XXXXXXXX
A NEW ALL- WAVE LINE NOISE FILTER
An all-wave line noise filter capable of eliminating
noises in the short-wave band quite as well as the broadcast band
is announced by the Technical Appliance Corp. , 27-26 Jackson
Avenue, Long Island City, N. Y. This H*F All-Wave Filter is the
result of long research and experimentation on the part of the
same engineers who developed the H-F (High Fidelity) antenna
system for all-wave reception with minimum background noise, and
becomes essential where background noise persists due to line
conditions.
The device connects between electric socket or recept¬
acle, and the attachment plug of any present-day all-wave set.
Or if preferred, it may connect between any electric appliance,
such as electric ice boxes, oil burners, motors, causing inter¬
ference, and its power line. The filter is provided with
receptacle and attachment cord. A binding post connects with
the ground binding post or metal chassis of set. Housed in a
neat, compact metal case are the filter coils and condensers,
arranged in two band filters covering the broadcast and short¬
wave bands, respectively. The assembly is sealed in compound
for permanent protection. The devices handle up to 250 watts.
XXXXXXXXXX
PARIS ATTEMPTS TO CONTROL LOUD-SPEAKERS
The recent suit of a well-known Parisian man-of-letters
against a neighbor for maintaining a public nuisance in the form of
a radio having been thrown out of court, the Municipal Council
took matters into its own hands and ordered the Prefect of Police
to cause the abatement of radio noise all over the city. The
Prefect has just made his reply, saying that he has no authority
to limit the loudness of wireless in private houses or the hours
at which it is turned on. It is only if the noise can be heard in
the street and is of such a nature as to "disturb the general
tranquility of the neighborhood", or is liable to dislocate traffic
by attracting a. crowd, that the police can do anything; and even
then they can only issue a summons, which has to come before a
magistrate.
XXXXXXXX
- 10 -
11/9/34
MARKS OF ORIGIN FOR BRITISH RADIO IMPORTS
The marking of an indication of origin on imported radio
goods is recommended in the report of the Standing Committee set
up by the President of the British Board of Trade to consider the
question.
The goods involved include receiving sets, radio and
electrical phonographs, audio-f requency amplifiers, and many com¬
ponents and accessories. The origin of the goods must be indicated
on sale and exposure for sale, both wholesale and retail.
The committee holds that it is difficult to distinguish
between British and imported goods, and that there is a "substan¬
tial possibility" that many purchasers may be unaware of their
origin.
Regarding the application made for an importation order
for many of the goods, the Committee says no sufficient case was
made out.
It is proposed that the order shall come into force
6 months after the date on which it is made, or on July 1, 1935,
so as to provide a reasonable period of notice to the trade.
The indication of origin may be either simply the word
"Foreign" or a definite indication of the country in which the
goods were manufactured or produced, such as "Made in U.S.A. "
XXXXXXXX
SOUND IS COMBINED WITH ELECTRIC TRAIN HEADLIGHT
The very latest for locomotives is the talking headlight,
the Associated Press reports from Schenectady.
General Electric engineers demonstrated this when the
Union Pacific streamline train visited the city. With the aid of
a microphone, mirrors on the train and at the railroad station,
and a little additional equipment, the scientists shot their
voices down the beams of the headlight to greet the crowd waiting
at the station 1,000 feet away.
The speaker talked into an ordinary microphone, and Neon
lights flashed his message into a mirror on the locomotive. This
mirror in turn di ot the message down the beams of the headlight to
a 36-inch mirror at the station and an electric eye picked up the
message, conveying it into the loud-speaker.
The scientists said this wasthe first time the headlight
of a locomotive has ever been used to transmit a spoken message.
XXXXXXXX
11
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11/9/34
APPLICATIONS GRANTED BY COMMUNICATIONS COMMISSION
BROADCAST DIVISION - WLLH, Albert S. Moffat, Lowell, Mass.,
license to cover C.P. 1370 kc. , 100 watts night, 250 watts day,
specified hours; KGHF, Curtis P. Ritchie, Pueblo, Colo., license
covering C.P. covering changes in equipment and increase in night
power from 250 to 500 watts, 1320 kc. , unlimited time; KVL, KVL,
Inc., Seattle, Wash., license covering changes in equipment, 1370
kc. , 100 watts, sharing with KRKO; WSPD, Toledo Broadcasting Co. ,
Toledo, Ohio, modification of C.P. extending completion date of
C.P. from Oct. 29, 1934, to Jan. 29, 1935; KECA, Earle C. Anthony,
Inc., Los Angeles, Cal., modification of C.P. extending completion
date of C.P. from Oct. 15, 1934, to Dec. 15, 1934; WSBT, South
Bend Tribune, South Bend, Ind. , modification of license to change
hours of operation from specified to sharing with WGES; WGES,
Oak Leaves Broadcasting Station, Inc. , Chicago, Ill. , modification
of license to change hours of operation from specified to sharing
with WSBT.
TELEPHONE DIVISION - WOB , and WNB, American Telephone &
Telegraph Co., Lawrenceville , N. J. , modification of license to
change point of communication to Hamilton, Bermuda, all other
terms of license to remain the same; American Telephone & Telegraph
Co. : WKA WLA WMA WNA WOA WKN WMN WON WCN WKF WMF WOF, Lawrenceville,
N. J. , and WNL, Rocky Point, N. Y. , modification of license to change
point of communication to London, England; all other terms of
license to remain the same; WPG, Ocean Gate, N. J. , modification
of License to change point of communication to London, England;
all other terms of the license to remain the same; New, Mutual
Telephone Co., Portable, Honolulu, T. H. , (2 applications), C.P.
(Exp. General Exp.); frequencies 86000-400000, 401000 kc. and above,
power 100 watts; WBB , Inland Waterways Corp. (Federal Barge Line),
New Orleans, La., granted license to cover C.P, (Private Coastal -
Coastal Harbor), 2738 kc. , 25 watts, to communicate with tugboat,
"Boswell" .
TELEGRAPH DIVISION - General Electric Co. , Portable-
Mobile (N. Y. ) , ( W2XAT ) , special temporary authority to operate
general experimental station for period of 30 days with 500 watts
power; WKDL, Pan American Airways, Inc. , Miami, Fla. , modification
of license to authorize replacement of equipment; New, William
P. Lear, NC-13402, license, 3105 kc. , 150 watts; KHAAV, Burnham-
Miller Flying Service, NC-378-M, license, 3105 kc. , 15 watts; New,
City of Ventnor, N. J. , C.P. , frequencies 30100, 33100, 37100, 40100,
86000-400000, 40100 kc. , and above, power 4.5 watts; New, University
of Florida, Gainesville, Fla., C.P., frequencies 2398, 6425, 12862.5
kc. , 600 watts; New, C. Albin Anderson, Mobile (Kane Co., Ill.), C.P.
frequency 30100 kc. , 5 watts power; W5XM , Durward J. Tucker, Dallas,
Texas, license to cover C.P. frequencies 33100, 35600, 37600, 41000
kc. , 40 watts power, for period endingg June 1, 1935; KEG, RCA Com¬
munications, Inc., Bollnas, Cal., fixed public pt. to pt. telg.
license, 5110 kc. , 20 KW and 40 KW; KGZV, City of Aberdeen, Wash.,
license to cover C.P. 2414 kc. , 125 watts.
XXXXXXXX
- 12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF NOVEMBER 13, 1934.
Will Let British Try Television First . 2
Results Considered Favorable At Lisbon Radio Conference . ..3
Increasing Popularity Of Radio In Mexico Reported. . 4
Radio Advertising Picks Up In September . 5
Calls NRA Collapsed Balloon. . . 6
Short Waves Efficient For Long Freight Trains . 7
Educational Hearings Close - Labor Withdraws Resolutions . 8
Clear Channels May Or May Not Be Broken Down . 10 v
Canada Restricts News Broadcasts To One A Day . 11
Hearing And Oral Argument Before FCC Telephone Division. ...... 11
Applications Granted By The FCC Broadcast Division . 12
No. 774
i HA1KHIM BHfiMJCWTIWH Cl, be
November 13, 1934.
WILL LET BRITISH TRY TELEVISION FIRST
At a dinner in Washington which the members of the
Federal Oommunications Commission gave in honor of the four lead¬
ers in the communications field of Great Britain, who are visiting
in the United States to study television, Judge E. 0. Sykes,
Chairman of the Communications Commission, said: "If you start
television over there before we do here, we’ll wait and profit by
your mistakes. "
The visitors said that Great Britain had immediately
before it the question as to whether the country would or would
not go in for television at this time. They explained that the
erection of television stations were being contemplated by several
European countries and the matter was up to them whether or not
they would meet this competition.
If they decide to begin television, then comes the
question as to how it is to be financed, "who is to pay the freight".
Before making the big decision the committee was sent to this
country to see how we were progressing with television and, if
possible, to ascertain our plans for its development.
The Britishers, at the dinner, brought up the matter of
international radio conferences past and present and felicitated
us on the fact that the English speaking people had always stood
together on these matters at Madrid and elsewhere, and expressed
the hope that they would continue to do so. They assured us that
we would continue to receive the moral support of the British
nation.
It was ma.de known at the dinner that the United States
would be represented for the first time in all three branches of
communications - radio, telegraph and telephone - at the Inter¬
national Communications Conference at Cairo, Egypt, next year.
The British delegation was composed of Lord Selsdon,
F. W. Phillips, Col. A. S. Angwin and N. Ashbridge, of London,
members of the Public Communications System of Great Britain, and
the British Broadcasting Co. , which is Government controlled.
Col. Thad H. Brown, Vice Chairman of the Broadcast
Division of the U. S. Federal Communications Commission, was Chair¬
man of arrangements for the dinner. Other members of the Commission
present were Paul A. Walker, former Gov. Norman F. Case, of Rhode
Island, Dr. Irvin Stewart, George Henry Payne and Hampson Gary.
The company present included also Paul D. P. Spearman,
General Counsel of the Communications Commission; Dr. C. B.
Jolliffe, Chief Engineer; Herbert L. Pettey, Secretary, and the
2
L
11/13/34
following other Commission officials: J. B. Reynolds, George
Porter> Gerald Gross, Joseph E. Keller, Theodore Bartlett, John
Hassler, John Killeen, Robert Bartley, Andrew Ring, A. G. Patter¬
son, Lieut. L. K. Jett, U.S.N,, W. G. H. Finch, Arnold C. Hansen,
William D. Terrell, Capt. E. M. Webster, U.S.N. , Judge Frank
Roberson, William Massing and Henry M. Berry.
The British visitors spent two hours with Dr. Jolliffe
and went into the technics.! details of our broadcasting system
most thoroughly. Before coming to Washington, they visited the
television laboratory of the RCA Victor Company at Camden, and
were shown through the plant by David Sarnoff.
In New York, Lord Selsdon expressed surprise at the
comparative cheapness of good American radio sets. He estimated
that instruments of equal value would cost almost double in
England.
X X X X X X X
RESULTS CONSIDERED FAVORABLE AT LISBON RADIO CONFERENCE
Nearly all the United States delegates and company
representatives to the third meeting of the CCIR (international
Technical Consulting Conference) at Lisbon have now returned.
Dr. J. H. Dellinger, of the U. S. Bureau of Standards, Chairman of
the delegation, and most of his staff landed in New York from the
"SS Manhattan" last Thursday, while J. C. McNary, National Associa¬
tion of Broadcasters’ representative, and several others, landed
at the same time from the "SS Saturnia. "
The United States delegation was successful in many of
its efforts to prevent the adoption of opinions by the conference
which might not have been in complete agreement with our present
practices. Our delegation had very little of a constructive
nature to gain at the conference, but was vitally interested in
a number of proposals which were considered by the various inter¬
ests affected, as objectionable. No opinions were adopted on the
subject of broadcasting which could be considered not in accord
with present U. S. practices, although some of the original pro¬
posals were somewhat at variance with our position.
Among the subjects discussed, resulting in formal
opinions, were single side band transmission for broadcasting,
directive antennas, anti-fading antennas, frequency separation
between broadcasting channels, short-wave broadcasting channels,
wave propagation curves for all frequencies including broadcasting
frequencies, receiver stability and selectivity characteristics,
synchronized broadcasting, and standard frequency transmission.
A number of other subjects were considered and resulted in addi¬
tional formal opinions thereon.
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11/13/34
The United States representation was characterized by
almost complete agreement among the several delegates and company
representatives on nearly all subjects. An exception was that of
single side band transmission for broadcasting, which received
the support of the American Telephone & Telegraph Company, although
opposed by the National Association of Broadcasters,
XXXXXXXX
INCREASING- POPULARITY OF RADIO IN MEXICO REPORTED
Improved economic conditions, better radio programs,
and more continuous service rendered by local broadcasting sta¬
tions have resulted in substantially expanding the market for
radio receiving sets in Mexico, according to a report from
Assistant Trade Commissioner R. Horton Henry, of Mexico City.
Imports of radio sets into the Republic in 1933 regist¬
ered a 70 per cent increase over the preceding year, it is pointed
out. During the first half of the current year United States
exports of radio receiving sets to Mexico amounted to 17,445 units
against 15,347 units for the corresponding period of 1933.
American manufacturers hold a predominant position in the Mexican
market, supplying in 1933 over 99 per cent of total sets imported.
The activities of Mexico’s domestic radio industry are
restricted to the construction of cabinets for imported chassis,
and although this is a comparatively recent development, the pro¬
duction of cabinets of domestic manufacture has assumed consider¬
able importance and is rapidly increasing. It is not unlikely,
the report states, that in the near future Mexican- made cabinets
will almost entirely displace the imported cabinets for the low
and medium priced sets.
There is practically no demand at the present time in
Mexico, according to the report, for crystal sets and the sale of
battery sets is confined to districts where electric current is
not available. The last two years have witnessed a notable in¬
crease in the sale of all-wave receiving sets, it being estimated
that approximately 50 per cent of the current demand is for the
all-wave receiver. Although the number of automobile sets in use
is still limited, their popularity is growing and an increasing
number of new taxis are being equipped with this service.
There are 58 broadcasting stations officially listed in
Mexico, the report shows, with 16 of these stations located in
Mexico City. Mexico’s capital city, it is pointed out, having an
altitude of more than 7,000 feet, offers an ideal location for
broadcasting stations. It is reported that reception from even
the low-powered stations of Mexico City is clear in certain sec¬
tions of the United States, particularly in the Mississippi Valley.
XXXXXXXXX
- 4 -
11/13/34
RADIO ADVERTISING PICKS UP IN SEPTEMBER
Broadcast advertising improved materially in volume dur¬
ing September. Total time sales amounted to $4,576,223, a gain
of 16.5/ over August. Network advertising rose 13.8/ during the
month, regional network advertising 35.6/, national spot volume
30.3/ and local broadcast advertising 13.1/.
Though the majority of this rise is due to seasonal
factors, part of it is a reflection of fundamentally improved
business. The September gain over the preceding month was con¬
siderably greater than in 1933, when an increase of but 6.9/ was
experienced.
Broadcast advertising during September of the current
year was 15.7/ greater in volume than in the same month of 1933.
National network revenues were 21.7/ above the 1933 level, region¬
al network volume almost double, national spot advertising 19.5/
greater, and local broadcast advertising approximately the same
as in the preceding year. The fact that no great improvement
in re-tail trade has occurred during the year is probably the
explanation for the lag in local broadcast advertising.
The greatest increase in non-network business during
the month occurred in the high powered regional and clear channel
field, where revenues rose approximately one- third as compared
with August. Regional station volume rose 15.5/ and local 100
watt station volume 3.6/. As compared with last year, however,
regional and local stations have made the better showing, being
27.6/ and 32.7/, respectively, above September, 1933.
The New England-Middle Atlantic Area and the Pacific
and Mountain Areas experienced the greatest rise in broadcast
advertising during the month, volume in both districts increasing
approximately 33.0/. Slighter gains were recorded elsewhere. As
compared with September 1933, the New England-Middle Atlantic Area
has gained 64.0/, the Middle West has made slight gains, the
Pacific and Far West has lost approximately 10.0/ and the South
has lost nearly 40.0/ in volume.
In the electrical transcription field, national spot
volume rose 42.8/ during the month, local volume remaining equal.
National spot live talent volume rose 53.3/ and local volume 15.0/
Both national spot and local announcement business increased
approximately 13.0/. Compared with September 1933, national spot
transcription volume is 13.6/ greater, live talent 37.4/ above
the previous year, and announcement business 14.4/ greater. Local
volume has remained comparatively changed in all fields.
X X X X X X X
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CALLS NRA COLLAPSED BALLOON
Frank R. Kent in the Baltimore Sun declares in his
famous column that the NRA's future "is all in the past" in the
following article, which is all the more significant because it
appears in the country's outstanding Democratic newspaper:
"It may be the fourteen or fifteen excellent gentlemen
named by the President in September to resuscitate the exceedingly
sick NRA are performing hidden miracles, and that soon a revital¬
ized organization free of all impurities and bursting with health
and beauty virill be revealed. But hardly anyone believes that -
not even the excellent gentlemen themselves.
"On the contrary, there is a pretty general conviction
that the NRA is close to a comatose condition, much too far gone
to be restored, and that the fourteen or fifteen excellent gentle¬
men named by the President on three separate boards are not
physicians at all - merely pallbearers. A somewhat false pride
seems to prevent this Administration from admitting the facts.
When one recalls the tremendous ballyhoo back of the scheme and
the glories it was to shower upon labor, industry and the world
generally, this reluctance is easy to understand.
"It is, naturally, increased by the results of the
election. To concede that one of the major New Deal policies
has collapsed beyond repair, right on the heels of a great popular
indorsement of New Deal policies, would be very bad medicine to
take. In effect, it would say to the people that they had gotten
a wrong idea of the situation; that instead of marching forward
the New Deal was slipping back; that they had been misled by
propaganda arid fed a lot of doctored pap.
"It would take very big men, indeed, to make admissions
of that sort - much bigger than are in this AcLmini street ion, des¬
pite the advertisements. Its leaders are dealing with this NRA
failure, not as the supermen some conceive them, but exactly as
average politicians deal with such situations - to wit, by con¬
cealing the realities and utilizing every face-saving device upon
which they can lay their hands.
"The truth is, the primary object of the NRA reorgani¬
zation was to get the unfortunate General Johnson out. The point
had been reached where the General, for a variety of reasons, had
become a liability and there was danger the whole thing would blow
up with a bang. The problem was to eliminate the General in such
a way as to avoid an explosion and with a minimum of public dis¬
illusionment. After months of marking time, during which the
morale of the machine went to pieces, Mr. Roosevelt succeeded in
retiring the General, and named, the fourteen or fifteen excellent
gentlemen who were to reorganize, under the general direction of
Mr. Donald Richberg, the great coordinator.
6
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11/13/34
"Even on the surface, it did not seen a practical plan.
Certainly, despite the periodical word that comes out of "pro¬
gress", it is quite clear it is not working. Having got General
Johnson out of the NRA, it was discovered that he was the NRA,
and with him out all left is the shell. As things stand, the
organization is in an incredible state of confusion, leaderless
and leaking. It is without a fixed policy or a firm foundation.
It is assailed on the one side by Industry, and the other by Labor.
The United States Chamber of Commerce moves toward the scrapping
of the Act, on the same day the American Federation of Labor
reports code violation increasing on a large scale. Mr. Donald
Richberg, the great coordinator, has made a number of speeches
of such a fair, cautious, balanced and wholly judicial nature
as to leave those who read at a loss as to what is the future
NRA policy, and create in their minds doubt as to whether Mr.
Richberg, the great coordinator, himself knows.
"As a matter of fact, he does not. As a matter of
fact, neither do any of the other excellent gentlemen. As a
matter of fact, the NRA's future is all in the past. It is a
collapsed balloon which cannot be rebuilt. All that can be done
is keep up the propaganda about retaining its conceded "good
features" in permanent form; continue playing on the Child Labor
and Sweat Shop keys, and refuse to admit that what the excellent
gentlemen are now doing is embalming the NRA for burial - that
the most that can be hoped is it will live again in shriveled
shape - and popular attention to the tragic collapse of this
giddy scheme continues to be diverted by other things. "
XXXXXXXX
SHORT WAVES EFFICIENT FOR LONG FREIGHT TRAINS
Headed by H. A. Shepard, General Superintendent of
Electrical Transmission and Communications of the New York, New
Haven & Hartford Railroad, a party of officials witnessed last
Saturday a test of radio communication between engine and
caboose on a freight train which ran from Springfield, Mass. ,
to New Haven, Conn. The apparatus enabled engine and caboose
crews to converse without the usual waving of hands and blowing
of whistles.
The apparatus was produced by the Westinghouse Electric
& Manufacturing Co. 'Walter C. Evans, Radio Division Manager of
the Company, said the demonstration showed that ultra short
radio waves were efficient and convenient in this form of rail¬
road service.
X X X X X X
7
11/13/34
EDUCATIONAL HEARINGS CLOSE - LABOR WITHDRAWS RESOLUTIONS
After five weeks of inquiry, the hearings conducted by
the Broadcast Division of the Federal Communications Commission
as to whether or not a fixed percentage of all radio facilities
shall be allocated to educational, religious and other non-
profit stations, were brought to a close. It is believed that
it may be several months before the report and recommendations
to Congress have finally been concluded but even if the work is
done before this time, the results will not be made public until
the report is submitted to Congress on or shortly before Febru¬
ary 1st. A complication may arise if, as generally reported,
Representative Frail, of New York, is to succeed Commissioner
Hampson Gary January 1st, as it is doubtful if Mr. Gary, head
of the Broadcast Division, who has presided at the hearings,
will have completed writing the report by that time.
Henry A. Bellows, of the National Association of Broad¬
casters, who was in charge of the broadcasters' side of the case,
said that the hearings comprised the most extensive and compre¬
hensive study of broadcasting made in radio's history.
The concluding witnesses included William Green, Presi¬
dent of the American Federation of Labor, Edward N. Nockels,
Secretary of the Chicago Federation of Labor, Douglas Griesemer,
National Red Cross, Anton Koeber, of the Peoples Pulpit Associa¬
tion, Dr. Harry W. Chase, Chairman of the National Advisory
Council on Radio in Education, Miss Alice Keith, who is now
employed by the National Symphony Orchestra, forming women’s com¬
mittees and lecturing to the schools; Dr. Cornelius Deeney, S.J. ,
University of Santa Clara, Calif. ; Irving Caeser, librettist
and publisher; William C. Hushing, National Legislative
Representative of the American Federation of Labor; Dr. John
Ward, U. S. Commissioner of Education; Morse Salisbury, Chief
of Radio Service, Department of Agriculture; J. Clyde Marquis,
Chief of the Information Division of the Agricultural Department,
and Dr. L. S. Rowe of the Pan American Union.
Mr. Green asked that the testimony of Mr. Hushing be
disregarded insofar as Resolutions No. 55, 171 and 200 of the
San Francisco American Federation of Labor convention were con¬
cerned. No. 55 was to the effect that the American Federation
of Labor expected to put on 30 radio programs a year to build
up the A.F.L. ; No. 171 that the AFL insist that not less than 50
percent of all radio facilities be allocated to organizations
operating on a non-profit basis, and No. 200 that the AFL regis¬
ter their protest against the continuance in office of any members
of the Federal Communications Commission who vote to surrender
more than 50 percent of the radio facilities to commercial sta¬
tions.
"Mr. Hushing was not informed a.s to the action of the
Executive Council following the adjournment of the Convention",
Mr, Green explained. "The Council, a-fter giving consideration to
the resolutions and the action of the Convention, referred them
8
11/13/34
to me, as President, and for such action as I might decide to
take .
"I had decided, in conformity with that decision of
the Executive Council, to withhold the submission of these
resolutions to the Commission. For that reason I now wish to
formally withdraw these resolutions from further consideration
by the Commission. "
Mr. Caesar said he represented no organization, when
Mr. Bellows asked for his identification, but it was said by
broadcasters present that his name was listed as one of the
defendents in the answer filed by the American Society of
Composers in the Government anti-mo nopoly suit. Caesar said
that he proposed to move that the cost of the so-called "free
show" provided by radio is out of all sound ratio to value
received.
"For one hour each day, an a.verage of 15,000,000
people on one network alone are busy at their dials; while
thus engaged, they cannot walk down the shop-lined streets,
wear out their shoes or wearing apparel, nor can they ride the
highways in their automobiles, with the attendant consumption
of gasoline, tires, wear on engines and so on", Mr. Gaesar
declared.
"The life of a. pair of shoes being 2500 hours, the
shoe industry has lost 6,000 pairs of shoes. That is the price
the shoe industry is paying for one hour's radio entertainment
on one network. On the basis of an audience of 15,000,000
listening for one hour, and taking as the average life of a
$15 suit as 3,000 hours, the clothing industry loses a potential
replacement demand of 5,000 suits valued at $75,000.
"Assuming that of the 15,000,000 radio audience, a
million car owners have kept their machines inactive during
that one radio hour, the gasoline industry loses a potential
demand to replace about 2,000,000 gallons of gasoline, which in
the ordinary course of events, would have been consumed."
And so Mr. Caesar went on down the line declaring that
"Amos ’ n! Andy" are said to have commanded the attention of an
audience of 50,000,000 over a period of many months and that
the night a big fight was broadcast, the moving picture theatre
receipts dropped to $100 when the average nightly business was
$3,000.
Dr. Chase said the real question is whether an enor¬
mously powerful instrument is being most effectively used, and if
not, how it can be used.
"In facing that question", Dr. Chase said, addressing
the Broadcast Division of the Commission, "you should realize
that you are considering the regulation of a device, not out
of which money can be made, but rather on which the cultural
9
11/13/34
and spiritual well being and entire well being of an entire nation
may depend. That is your responsibility and it transcends any
commercial or political considerations."
Chairman Gary said that all parties to the hearings
will have until November 26th in which to file briefs.
T - - -
xxxxxxxx
CLEAR CHANNELS MAY OR MAY NOT BE BROKEN DOWN
Although it seems to be a foregone conclusion that the
plans for a survey of the clear channels foreshadows the breaking
down of these channels, quite a different view of this was taken
by an official of the Communications Commission, wrho said:
"I have no doubt many believe that the survey will be
used as a justification of breaking down the clear channels but
we think it may serve the opposite purpose. "
This official added, however, that the attitude of
Government officials naturally had to be an impartial one. He
said that the clear channel survey would be an unbiased one. Its
purpose, as he explained it, would be to gain complete engineer¬
ing knowledge of stations which served rural listeners and what
proportion of these stations depended upon clear channels. He
said that if it was ascertained that there was no good engineer¬
ing reason wrhy the clear channels should be maintained, or if
it was shown that there was great need for clear channels, those
making the report would be governed accordingly.
Following a meeting of the representatives of the clear
channel stations at the suggestion of the Broadcast Division of
the Communications Commission last Friday, another conference by
the same group will be held Friday, November 23rd.
The Commission proposed that a complete survey of ser¬
vice rendered by clear channel, regional and local stations be
made during the coming Winter months and extending into the next
Spring season.
The tentative plan as suggested by the Engineering
Division of the Commission involves four lines of endeavor, as
follows - Continuous field intensity recordings of clear channel
stations, the records to be made at distances varying from 1000
to 3000 miles.! an analysis of duplicated clear channels (such
as 790 kilocycles occupied by WGY and KGO) , with complete deter¬
mination of radiation characteristics of the individual stations
as well as determination of the field intensities and service
rendered in the areas between stations; Field intensity measure¬
ments made in rural districts throughout the United States with
correlation with listener habits as determined by personal in¬
vestigation, and listener habit survey of rural audiences to be
conducted by mail, by the Commission.
- 10 -
B'lh
: ■ Jr: ■
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.
11/13/34
It is planned that individual stations may participate
in the survey, although all data will be coordinated and compiled
by the Commission staff. It is understood that the survey is not
definitely limited to clear channel measurements, but may include
measurements, in some cases, of service rendered by regional and
local stations.
Among the stations which offered cooperation in the
form of field intensity measuring or recording apparatus, trucks,
personnel, etc. , were WSM WSB WLW WGN WSPD KYW KFI WJR WL WFLA
KNX WHAM WCAU WFAA WSB WGY WLS 7/0 A I , and the Yankee Network
and Jansky & Bailey.
XXXXXXXX
CANADA RESTRICTS NEWS BROADCASTS TO ONE A DAY
One news broadcast each night will be Canada’ s allot¬
ment in the future. This decision was taken at a conference
between Directors of the Canadian Press and officers of the
Canadian Radio Broadcasting Commission held in Montreal recently.
Ten o'clock Eastern Standard Time was the hour agreed
upon, and the broadcast will last 15 minutes. Some newspaper
publishers asked that the broadcast be sent over all Canadian
stations, but Hector Charles, Chairman of the Commission, said
this would interfere with commercial programmes already arranged.
Any station willing to carry it will, however, be furnished with
the news broadcast.
Mr. Charlesworth asked for specific instances of news
pirating by private stations which had been complained of, and
said the Commission would act on them.
XXXXXXXX
HEARING AND ORAL ARGUMENT BEFORE FCC TELEPHONE DIVISION
A hearing and oral argument before the Telephone Divi¬
sion of the Federal Communications Commission will be, or rather
is, scheduled for Friday morning, November 16 at 10 A. M. At
this time Orders No. 7 and &- A, re: Accounting Rules for Telephone
Companies, Interstate Commerce Commission, and Order No. 10, re:
Depreciation Charges of Telephone Companies, Interstate Commerce
Commission will be taken up.
In the case of Orders No. 7 and 7-A, exceptions have
been filed by: Michigan Public Utilities Commission, Railroad
Commission of California, National Association of Railroad &
Utilities Commissioners, Bell System Telephone Companies, United
States Independent Telephone Association, Public Utilities
11
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Commission of the District of Columbia, Railroad Commission of
Florida, Public Service Commission of Louisiana, Public Utilities
Commission of Maine, Public Service Commission of Maryland,
Department of Public Utilities of Massachusetts, Public Service
Commission of New Hampshire, Public Service Commission of New
York, Public Utilities Commissioner of Oregon, Public Utilities
Commission of Utah, Public Service Commission of Vermont, Depart¬
ment of Public Works of Washington.
The Order of appearance at the hearing will be:
(1) Representatives of the State Commission and of the
National Association and Utilities Commissioners; (2) representa¬
tives of the Bell Systems Telephone Companies; (3) representatives
of the United States Independent Telephone Association; (4)
rebuttal argument if requested.
XXXXXXXX
APPLICATIONS GRANTED BY THE FCC BROADCAST DIVISION
New - J. H. Speck, Santa Fe, N. Mex. , C.P. for new sta¬
tion to operate on 1310 kc. , 100 watts, unlimited time (site to
be determined); WKRC , WKRC, Inc., Cincinnati, Ohio, modification
of C.P. extending commencement date to Oct. 29, 1934 and comple¬
tion date to Jan. 29, 1935; WPHR, WLBG, Inc. , Petersburg, Va. ,
modification of C.P. extending commencement date to Dec. 15, 1934
and completion date to Jan. 15, 1935; KYW, Westinghouse Electric
& Machine Co., Whitemarsh Twp. , Pa., modification of C.P. extend¬
ing completion date to Jan. 10, 1935.
Also, W9XK, University of Iowa, Iowa City, la., C.P.
to add another transmitter and change frequencies to include
42000-56000, 60000-86000 kc. , and increase power to 100 watts;
also granted modification of license to include the frequencies
in C.P. above; W1XCW, Regan & Bostwick, Portable (St. Albans, Vt. )
modification of general experimental C.P. to change equipment to
crystal control and change frequency to 31100 kc. in lieu of
40600 kc. , increase power to 20 watts, and extend construction
period to 90 days after commencement of construction; W9XAI ,
Stromberg- Carl son Tel. Mfg. Co., Rochester, N. Y. , modification
of C.P. to extend completion date to December 1, 1934.
Miscellaneous
New, Joseph M. Kirby, Boston, Mass. , reconsidered and
granted in part application for C.P. for a new radio station to
operate daytime only on 1120 kc. , 500 watts. The part request¬
ing 250 watts night was left on the hearing docket; this action
was taken on a motion by Commissioner Sykes, seconded by Commis¬
sioner Brown and was carried unanimously; New, Patrick H. Goode,
New Haven, Conn. , granted amended application to erect new broad¬
casting station to operate on 900 kc. , 500 watts, daytime only;
this action was taken as above.
XXXXXXXX
- 12 -
Heinl Radio Business Letter
V 2400 CALIFORNIA STREET WASHINGTON, D. C.
M. ... — ■ — — —
v \ CONFIDENTIAL - Not for Publication
. 111 '
fV' r//^A jd ~'f
d k/ w/ * a~ -V ’ ^ r
tV7 „ S INDEX or NOVEMBER 16, 1934.
VVVY v w
Trade Commission to Scrutinize Southern Stations Ads . 2
\
Leader Seen Caught Between Two Fires In AFL Radio Action . 3
Aylesworth Referred To In Utility Propaganda Report . ...4 <-
■■ ■ f ... \
Radio Assists In Capital Vice Expose. . . ; .... . . . . . 3
Australians Refer Music Differences To Arbitration. . . . . ,.i A ... .5
\ , ,s ^ ic$4 ,v .A
Mussolini Makes Friendly Gesture Through New Station. . . , ^tA. ... 6
Long Expected A. T. & T. Inquiry Ordered; iwYfr: . 7
^ 4
A3S Gets First Commercial . . . 8
Mackay Opens All Radio Japan Service . 9
Newspaper Representative Observes Radio Trend . 9
New Edition Of RCA World Map . 10
Composers To Move Into Radio City . 10
Copeland All Set To Introduce New Foods & Drugs Bill . 10*
Short Waves As Medicine Demonstrated.. . 11
Alarm On Paris Phones To Warn Of Burglars . 11
May Ask End Of Press Codes . . . 12
( MwaL WtoB&mw r ~77~i
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P N0V19 1334 f;l
: 1 !l1j1 ; - I
No. 775
I
TRADE COMMISSION
- I 1)
m
O SCRUTINIZE SOUTHERN STATIONS ADS
Continuing its campaign for the elimination of false
and misleading advertising from radio broadcasts, the Federal
Trade Commission is making its fourth call upon broadcasting
stations to file copies of their advertising continuities with
the Commission,, The call is for continuities used by stations
in the Second Radio Zone of the United States for two weeks end¬
ing December 15th. This includes stations in the States of
Kentucky, Michigan, Ohio, Pennsylvania, Virginia and West Virginia.
When the Federal Trade Commission issued its first call,
the order went to all States and the Commission was swamped. It
was then decided to call for continuities by zones. As a result
of this calls were made upon stations of the First Zone which
included Maine, New Hampshire Vermont, Rhode Island, Connecticut,
Massachusetts, New York, New Jersey, Delaware, Maryland, District
of Columbia and Puerto Rico for the period ending November 50th.
Following this, a call went to the Fourth Zone for the
period ending December 1st to stations in Illinois, Indiana, Iowa,
Kansas, Minnesota, Missouri, Nebraska, North and South Dakota and
Wisconsin. Thus the calls have been staggered over a consider¬
able period of time and like the visits of a bank examiner, the
stations did not know when they would come.
In response to its first call, covering advertising
programs for the month of July, the Commission received 180,877
continuities. Of these, 161,466 were found to be subject to no
criticism and were filed without further action. The remaining
22,411 continuities, representing several hundred advertisers,
were referred for further examination. Of the ten network systems
and 598 broadcasting stations in the country, all filed their con¬
tinuities in compliance with the Commission’s request, while the
continuities submitted by transcription companies represent 95
per cent of the total volume of such advertising.
In issuing the latest call, officials of the Federal
Trade Commission were again warm in their praise for the coopera¬
tion they have received from the broadcasting industry.
"They seem to be about as anxious to clean house in
radio advertising as we are", one of the officials at the Commis¬
sion said, "and apparently are pleased to have the Federal Trade
Commission behind them. There have been cases where a station
would gladly have turned down more or less questionable advertis¬
ing but felt if they didn’t take it, their competitors would, but
now can turn it down saying, ’We don*t believe that would get by
the Federal Trade Commission’.
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11/16/34
"We have had the response of everybody from the
National Association of Broadcasters, and the large networks, down
to the individual stations. It isn't censorship on our part. We
don't see the continuities until after they have been broadcast.
We don't say to them what they can broadcast but if what they
have broadcast is, in our opinion, false or misleading, we tell
them not to do it again. 11
XXXXXXXX
LEADER SEEN CAUGHT BETWEEN TWO FIRES IN AFL RADIO ACTION
There was considerable speculation as to why William
Green, President of the American Federation of Labor, withdrew
the three resolutions which had previously been presented to
the Federal Communications Commission by William C. Hushing,
National Legislative Representative of the A. F. L. in connection
with the educational-religious program hearings.
One resolution carried with it the demand that not
less than 50 percent of all radio facilities be allocated to
organizations operating on a non-profit basis; another resolution
was that the Federation of Labor register their protest against
the continuance in office of any members of the Federal Communi¬
cations Commission who votes against the 50-50 proposition, and
a third that the AFL put on 30 radio programs a year of its own0
The second resolution was construed as a threat on the part of
the AFL to prevent the Senate from confirming the Communications
Commission.
A theory of Mr. Green's withdrawal, advanced by a labor
leader, was that he probably felt that it was hopeless to appeal
to the Commission with such a drastic demand that the 50 percent
of the radio facilities be given to labor and other organizations,
and that he (Green) proposed to go direct to Congress.
"There will be a pretty wild bunch on the Hill next
January", the informant ventured, "and although the Federation
of Labor isn't especially desirous of government ownership, it
wouldn't surprise me if even that might be in the cards if Mr.
Green were to present the resolution and express labor’s dissatis¬
faction with the large proportion of the channels now in posses¬
sion of the commercial interests. "
Quite a different theory was suggested by a broadcaster,
"Mr. Green, as President of the American Federation of
Labor, was plainly caught between twro fires", he said. "He is
in the record as praising the American system of broadcasting.
Mr. Green , furthermore, realizes that labor in general has been
able to toet all it wanted from broadcasting stations without cost
and that if given 50 percent of the facilities, the broadcasters
3
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are liable to say to him, 'you don1 t need us anymore.' In addi¬
tion to this, he is a member of the Advisory Committee of the
National Broadcasting Company. We believe Mr. Green is satis¬
fied with broadcasting conditions insofar as labor is concerned
and believing 'the boys' had made a mistake in passing such
drastic resolutions, quietly withdrew them after they had been
presented to the Federal Communications Commission. "
xxxxxxxxx
AYLESWORTH REFERRED TO IN UTILITY PROPAGANDA REPORT
The Federal Trade Commission, in its report to the
Senate dealing with the publicity and propaganda activities of
!the electric, power and gas industries, quoted M. H. Aylesworth,
jwho is now President of the National Broadcasting Company, but
!®who was then connected with the electrical industry.
This Commission "finding that every publicity method
j except 'sky writing1 was used in attempts to influence the public",
reported:
"The total results which have been secured from all the
various activities cannot be measured, but to such an extent has
the utility program taken into consideration 'every public contact'
that no campaign approaching it in magnitude has ever been conduct-
,ed except possibly by governments in war time. The various utility
associations have collected and disbursed probably more money for
jgood will purposes than has been secured or paid out by any other
vgroup or organization not actually engaged in commerce or manu¬
facture.
X
"The record indicates very substantial results both in
increased public good will, and in a. decrease in the number of
legislative measures to which the utilities are opposed ifc *
"In emphasizing that the work was worth while, M. H.
Aylesworth, then director of the National Electric Light Associa¬
tion, advised utility executives not to be afraid of the expense
in permitting large numbers of their employees to attend conven¬
tions, because the 'public pays'. This is materially true, as
the cost of all the public relations work is usually charged up
as operating expenses by the utility companies, but the public's
paying does not end with that, for whenever such original payments
are used in successfully lulling the paying public into satis¬
faction with improper rates or charges, to such e xtent does the
public pay for the privilege of continuing to pay excessively, as
as such rates continue in force. "
XXXXXXXXX
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11/16/34
RADIO ASSISTS IN CAPITAL VICE EXPOSE
Harry Butcher, manager of the Columbia Broadcasting
System's outlet in Washington, has assigned four of Station WJSV's
best known features to a coverage of the numbers game, a gambling
habit the police are trying to stamp out, in conjunction with
stories now running in the Washington newspapers.
"Since the newspapers are uncovering the evil of the
numbers game, by interviewing prominent Washingtonians", Mr.
Butcher said, "I believe we can lend a helping hand by putting
the same information on the radio. So I have asked Elder Michaux
to devote his Church of the Air program to a numbers game broad¬
cast next Sunday morning - from 8 to 9. Also, Arch McDonald, our
sports reviewer, will tell of the racket in his evening programs,
daily at 6:30 o'clock.
"Then Arthur Godfrey will broadcast bits of information
about the numbers game each morning from 7 to 9. On top of this
Bob Trout will interview 'the man on the street’, asking the
question: 'What do you think of the numbers racket?' This feature,
which got started last Tuesday, will go on the air again
Saturday at 5:30 P.M. and again on Monday at 4:45 P.M. "
In the event the District Commissioners hold public
hearings on the numbers game, with a view to shaping legislation
the Columbia Broadcasting System will broadcast these hearings,
Mr. Butcher said. Also any hearings before the House and Senate
Committees.
**
xxxxxxxx
sm B
r* v *r
C ^AUSTRALIANS REFER MUSIC DIFFERENCES TO ARBITRATION
A dispute between the "B" class (privately-owned)
broadcasting stations of Australia and the Australasian Performing
Right Association concerning the payment of fees by the "B" class
stations for the use of music of which the A. P.R. A. owns the copy¬
right, has been referred to arbitration at the instance of the
: A. P.R. A. The differences between the parties rest on the conten-
| tion of theA.P.R. A. that royalty fees for the use of music for
| broadcasting should be based upon the revenues of the broadcast-
| ing station and that payment should be assessed as a proportion of
the broadcaster's revenue. The proprietors of the broadcasting
\ station consider that a flat rate payment such as has been made
I in the past, should be continued, and that, if the royalties arc
’■levied on a percentage of revenue, a tax will be imposed on enter¬
prise. At this stage, it is declared, the extra royalties which
■would be involved by the proposed change in the basis of payment
|would be small, but the margin would increase as the revenue of
(the broadcasting stations rose.
XXXXXXXX
- 5 -
U/16/34
MUSSOLINI MAKES FRIENDLY GESTURE THROUGH NEW STATION
Reports to Commander E. F. McDonald, Jr. , President of
the Zenith Radio Corporation, in Chicago, are that Prato Smeraldo,
the new shortwave station in Italy, is coming into the United
States with excellent volume. It is heard on both 40.70 and
30.27 meters at 6:30 o'clock EST. Commander McDonald is advised
by his Italian representative that the new station, which is
located at Rome, has directional antennas directed to the United
States for special "American Hour" programs, some of which follow,
the one for Friday, November 23rd, including a talk by Vittorio
Mussolini, oldest son of the Premier:
Monday, November 19
American anthem. Giovinezza.
Speech by D. H. Rossoni, Undersecretary of State
Selections from the opera, "La. G-ioconda" by Amilcare
Ponchielli
News bulletins of sport, commerce, literature
"Inno a Roma" by Puccini
Wednesday, November 21
American Anthem. G-iovinezza
Speech by H. E. DeStefani (former Minister of Finance)
Concert of the "Banda del Regio Corpo dei Metropolitan!",
conducted by Maestro Andrea Marche sini (Rome Police Corps)
Conversation of Senator Puricelll "Tourism and Roads"
Regional Songs
News bulletins of sport, commerce, literature
"Inno a Roma" by Puccini
Friday, November 23
American Anthem. G-iovinezza.
Speech by H. E. Marshall Badoglio (Chief of Staff)
Selections from the opera, "Suor Angelica", by Giacomo Puccini
Conversation by Vittorio Mussolini (Duce's eldest son) on
Journalism of young people
Regional songs, among which are "Villotta" , "La Rosina
bella sul Merca", "Mazzolani", "Rataplan"
News bulletins of sport, commerce, literature
"Inno a Roma" by Puccini
Monday, November 26
American Anthem. Giovinezza
Speech by On. Delcroix (Member of Parliament and war veteran)
Selections from the opera, "II Rigoletto", by Giuseppe Verdi
Conversation by Gr. Uff. Alberti, Secretary-General of the
Senate, on Giuseppe Verdi
Songs - "LeoncavaJLlo? , "Valzer delle Rose", Pietri", Marcia
di Tuffolina"
News bulletins of sport, commerce, literature
"Inno a Roma" by Puccini.
X X X X X X X
6
11/16/34
LONG EXPECTED A. T. & T. INQUIRY ORDERED
In the cards ever since Senator Dill, of Washington,
demanded it last session, and possibly even before that, an
investigation of the American Telephone and Telegraph Company is
soon to become a reality. Senator Dill, who did not seek re-
election, did not press his investigation resolution upon assur¬
ances that it would be one of the first matters taken up by the
shortly thereafter to-be-created Federal Communications Commission.
In fact, it was reported in Washington that President
Roosevelt's main interest in the creation of the Commission was
that it afforded a medium of giving the Telphone company, "a
good spanking". Furthermore, it seemed to be understood that
Paul A. Walker, who had made it warm for the public utilities in
Oklahoma, was hand-picked by the President for the telephone job.
Also, it is said that was why Paul D. P. Spearman, who has a
reputation as an aggressive cross-examiner, was selected as the
Commission's general counsel.
As it appears now, the public hearings will not begin
until after the let of January, and if so, with the new Congress
in session and all, there will be plenty of excitement.
That the Telphone Company will not take it "lying down"
was indicated by the attitude of Walter S. Gifford, President of
the American Telephone & Telegraph Company, at the Senate hearings
on the Communications Commission Bill. Mr. Gifford bristled with
facts and figures and was not one of those kind of witnesses who
had to have a staff of people to prompt him. He apparently had
the affairs of the company, down to the smallest details, at his
fingers ends. Time and again Dill and other Senators went after
him, but Mr. Gifford, never losing his composure, parried the
questions and proved well able to take care of himself even in
the rough and tumble debate to which the Senate is so accustomed
but which is frequently so disconcerting to those called upon to
testify.
The investigation, which will cover besides the A. T. &
T. , its associated or related companies or organizations, services
and contracts, will not concern rates, although they may be
inquired into later. In describing its purpose, the Telephone
Division outlined this tentative program:
"(A) The investigation and study of the corporate history
and the financial structure of the American Telephone and Tele¬
graph Company, including the connections and relationships with
the Associated Bell Companies and the other subsidiaries of the
American Telephone and Telegraph Company.
- 7 -
11/16/34
,rThis examination will also include subsidiaries which manu¬
facture equipment and supplies for the parent American Telephone
and Telegraph Company and for the Associated Bell Companies,
including all subsidiaries or related companies which affect the
communications industry, under the jurisdiction of this Commission,
"The examination will include the financial arrangements
between the American Telephone and Telegraph Company and its
subsidiaries, and the agreements, financial and otherwise, of the
various subsidiaries with each other.
" (B) - A general inquiry into the license and service con¬
tracts between the American Telephone and Telegraph Company and
the various Associated Bell Companies.
"(C) - A general inquiry into the contracts between the
American Telephone and Telegraph Company and the Western Electric
Company, Inc. , also the contracts between the Western Electric
Company, Inc. , and the Associated Bell Companies. "
After witnesses from the A. T. & T. and subsidiaries
are heard, the hearings will be adjourned, and witnesses from
independent companies will appear later.
"This inquiry will bo directed at the financial struc¬
tures, services, agreements and contracts" of independents engag¬
ed in interstate commerce, it was announced.
The investigation will probably be used as the basis for
a report to Congress. How long the hearings might last was a
matter of conjecture.
XXXXXXXX
ABS GETS FIRST COMMERCIAL
The first commercial program on the new American Broad¬
casting System- WMCA network will be heard tonight (November 16)
when the Adam Hat Company will present at 9:55 P.M, EST over the
ABS- WMCA network, the ringside description of the Maxie Rosen-
bloom-Bob Olin fight at Madison Square Garden in New York.
The broadcast will be heard over stations WMCA, New
York; WAAB, Boston; WPRO, Providence; WIP, Philadelphia; WCBM,
Baltimore; WOL, Washington; WJBK, Detroit; WEBR, Buffalo, KQV,
Pittsburgh, WFBE, Cincinnati, and WDEL, Wilmington.
XXXXXXXX
- 8 -
11/16/34
MAC KAY OPENS ALL RADIO JAPAN SERVICE
Direct high-speed radiotelegraph service between
the United States and Japan opened last Wednesday by the Mackay
Radio and Telegraph Company, a subsidiary of the International
Telephone and Telegraph Corporation, and the Japanese Government
radio administration.
This new service with Japan is available to all parts
of the United States through the facilities of Postal Telegraph.
In Japan, direct communication is provided to all points through
the Japanese Government telegraph system which connects with
the radio station at Tokio.
From New York and the eleven other principal cities
in which Mackay Radio operates, the circuit with Japan is radio
all the way.
XXXXXXXX
NEWSPAPER REPRESENTATIVE OBSERVES RADIO TREND
As evidence of the growing tendency on the part of
manufacturers to increase their expenditures in other media,
John T. Fitzgerald, of Reynolds-Fitzgerald, Inc. , President of
the Newspaper Representatives' Association, of Chicago, referred
to a special report compiled recently for Sales Management by
Advertising Record Company, showing radio expenditures for the
first eight months this year as compared with the same period in
1933, Of the three general product classifications mentioned
as still heavy users of national newspaper advertising, all show
substantial increases in radio expenditures for national network
broadcasting. One of the three, drugs and toilet goods, lias
nearly doubled its radio advertising during the past year,
according to Sales Management figures.
A comparison of network radio broadcasting expenditures
for these product classifications follows:
Eight- Month Totals
1933 1934
Cigars, Cigarettes and Tobacco
Drugs and Toilet Goods
Foods and Food Beverages
$2,096,164
4,507,761
5,551,375
$2,199,843
8,531,568
7,291, 954
Note - The network radio broadcasting figures cover all
national or chain broadcasting carried over the networks of the
National Broadcasting Company and Columbia Broadcasting System.
The figures cover facilities only and do not include talent charges.
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11/16/34
NEW EDITION OF RCA WORLD MAP
A new edition of the world-wide telegraph system of RCA
Communications, Inc. , has been received from William A. Winter-
bottom, Vice-President and General Manager. This shows radio
telephone as well as radio telegraph circuits operated by R. C. A.
Communications. The telephone circuits go to Honolulu and Manila
and from Manila, by automatic relay to Java, Siam and Berlin. In
the United States the domestic circuits to Washington, Boston,
New Orleans, Chicago and San Francisco are now shown by solid
lines instead of dotted lines as heretofore, showing the comple¬
tion of these circuits.
In order to simplify the map, the very numerous relay
circuits from foreign destinations of the RCA direct circuits have
been omitted. France has relay circuits to all French Colonies;
Great Britain, of course, Holland the same, and so on.
Subsidiary circuits are noted between San Juan and New
Orleans, Havana and New Orleans and Manila and Shanghai, supple¬
menting direct circuits to New York and San Francisco, Manila and
Tokio and Honolulu with Manila, Tokio and Saigon.
It is noted that the terminus of the Manchurian circuit
has been transferred from Mukden to Hsinking.
XXXXXXXXXX
COMPOSERS TO MOVE INTO RADIO CITY
On or about November 30th, the American Society of
Composers, Authors and Publishers will be moved to the 45th floor
of the R.C.A. Building at 30 Rockefeller Plaza, New York City.
xxxxxxxx
COPELAND ALL SET TO INTRODUCE NEW FOODS & DRUGS BILL
Aided and abetted by Under Secretary of Agriculture, Rex
' Tugwell, Senator Copeland of New York, just reelected for six
years, will introduce a Foods & Drugs Bill modelled very much along
the lines of the one to which broadcast advertisers so vigorously
objected last session. It will be drafted by Ole Salthe, formerly
Director of the Bureau of Foods and Drugs of the New York State
Health Department.
XXXXXXXX
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11/16/34
SHORT WAVES AS MEDICINE DEMONSTRATED
The use of radio apparatus to transmit heat in the treat¬
ment of certain diseases was demonstrated at the opening session of
the American Congress of Physical Therapy in Philadelphia by two
young Frenchmen, Dr. A. Halphen and Dr. J. Auclaire.
Under the patient's bed, Dr. Halphen explained, are
electrodes and at a distance, some times in an adjoining room, is
the generator.
"There is no wire or cable, nothing to disturb the
patient, he proceeded. "His temperature - in cases where medica¬
tion is made speedier and more effective by raising the temperature -
goes to the desired height and in the desired time by means of the
short waves.
"By this method we can bring to the physician a patient
ready for the best results of treatment, in a certain social dis¬
ease which responds to heat treatments. A patient can be heated to
104 or 105 degrees for 100 hours, a 100 per cent cure being effect¬
ed by this single treatment. Ordinarily this disease takes at
least six weeks to cure. "
An American short-wave frequency apparatus was demon¬
strated at the meeting. It differs from the Frenchmen's device in
that the electrodes are applied directly to the patient. The
apparatus resembles an ordinary radio set, except that it is a
broadcasting instrument rather than a receiving set.
It may be used, it was explained, for electro- surgical ,
electro-coagulation or to induce artificial fever.
XXXXXXXX
ALARM ON PARIS PHONES TO WARN OF BURGLARS.
The engineers of the Ministry of Posts, Telegraphs and
Telephones have just perfected an alarm to warn of burglars. The
device, called a "Sygnaphone" , consists of a small phonograph¬
like apparatus which is hooked up with an ordinary telephine, and
by multiple contacts with various parts of the house and a direct
connection with the police headquarters constitutes, it is claimed,
a foolproof burglar alarm.
If a contact is established, the phonograph apparatus is
set in motion, notifying the police of the address of the residence
which is being robbed. Not only do the Posts, Telegraphs and Tele¬
phones officials hope to place the burglar alarm in hundreds of Paris
homes, but -also to install hundreds of additional telephones.
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11/16/34
MAY ASK END OF PRESS CODES
An assertion that all newspapers might be advised to
withdraw from NRA codes if the Labor Relations Board accepted
jutisdiction in a dispute between the San Francisco Call-Bulletin
and one of its former employees, was expressed recently in
Washington.
The complaint was brought before the Board by Dean
Jennings who said he was forced to resign his position as the
Call-Bulletin* s chief rewrite man because of activities with the
newspaper guild.
Elisha Hanson, who also is counsel for the American
Newspaper Publishers* Association, held the dispute was one which
should be handled by the newspaper industrial board, the Code
Authority.
Alexander Lindey, speaking for the guild, contended the
Labor Relations Board was given authority to treat with such
cases by the law establishing it, enacted by Congress last Spring.
The hearing was closed, but subsequently Hanson gave
this version of the hearing to newspapermen:
"I was asked what would happen if the Board issued an
order in this case. I said that Mr. (William Randolph) Hearst
(owner of the paper) would not comply with it.
’* I was asked if I was authorized to state the position of
Mr. Hearst. I said his position was that if the code was meaning--
less insofar as the Government was concerned, it was meaningless
insofar as he was concerned. '*
XXXXXXXXXX
12 -
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2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
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1934
I |^|Bi4i 5'iG
INDEX TO ISSUE OF NOVEMBER 20, 1934.
Would Transfer Radio Operators Back To Ship -Bureau . 2
Radio Manufacturers Called For Code Discussions . 3
Angle Succeeds To Head Of Stromberg-Carlson. . . .
N. Y. Mayor Suggests Restricting Loud Speakers.
Hearst Buys WBAL . . .
Lutheran Station To Observe 10th Anniversary. . .
Roxy To Try To Revive Philadelphia Theatre .
Broadcasters Go Bear Hunting .
Another Clear Channel Study Meeting Friday .
James Promises Radio Advertising Facts .
Johnstone, Radio Publicity Pioneer, Goes To WOR
A3S Adds New Station At Albany .
Industry Notes . 9
Stage Code Again Protests Free Broadcast Attendance. . . . 10
All Stations Join In Washington Gambling War . 10
European Radio Development . 11
Broadcast Advertising Displaces Billboards . 12
f BAHliwrtL BHOHOGOTS f ,/lnc. i
£ _ LE6AI DEPAWfMENT
W B9BIV f
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No. 776
CD CD -O C CD O CJien
November 20, 1934.
WOULD TRANSFER RADIO OPERATORS BACK TO SHIP BUREAU
In his report of the burning of the "Morro Castle1’ ,
Dickerson N. Hoover, Assista.nt Director, recommended that radio
operators be put back under the jurisdiction of the Navigation
Bureau of the Commerce Department where they were before the
Radio Commission took them over.
■’The crux of the whole matter for improving the effic¬
iency of the Steamboat Inspection Service rests in the creation
of a central staff in Washington”, Mr. Hoover suggests. "Until
that is done, we cannot hope to have any constructive improve¬
ment made in the design of ships with reference to subdivision
and Governmental approval, and the same would hold with refer¬
ence to superstructures. It is not sufficient to follow the
industry; the Government must lead.
"I recommend that there be transferred to the Bureau
of Navigation and Steamboat Inspection the licensing and dis¬
ciplining of radio operators on ships. A ship must be consider¬
ed as an entity, and radio operators are a part of it, and should
be disciplined by the same agency that has control over officers. If
The testimony shows that the stand-by or CQ, was sent
over the wireless at 3:18 A.M. , and the SOS at 3:24 A. M. , E.S.T.
It is evident that the fire had been out of control for some
time when the SOS was finally sent. While there was criticism
that the radio signal was slow in going out, this was rather
levelled at the Acting Captain of the "Morro Castle", the radio
operator being under his orders.
If Director Hoover's recommendation were followed out,
it would return the Field Division, so long headed by W. D.
Terrell, to the Navigation Bureau in the Commerce Department.
All radio control was originally lodged there under the old
Ship Act due to the fact that wireless orignally was used
principally aboard ships. However, as wireless developed into
radio and entertainment programs, the field broadened so greatly
that the Federal Radio Commission was created. It was sometime,
however, before the Commission took over the Division that had
to do with licensing ship operators. This remained under the
CommerceDepartment for several years before being absorbed by
the Radio Commission. Ship radio inspection is now a part of
the Engineering Division of the Federal Communications Commission.
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11/20/34
According to a Government official, there has never
been a time in any great ship catastrophe when a complaint
that the radio apparatus failed to function properly has been
made. This was attributed to the care with which the inspection
of radio apparatus is made and the fact that the time of Govern¬
ment inspections are unknown to ship radio operators. They expect
to be inspected every time they go into port.
"Also you have never heard of a radio operator beating
the other passengers into a lifeboat", said the Government
official previously mentioned. "Jack Binns stuck and saved his
ship. Philips lost his life heroically on the Titanic. Kuhn,
I think on the Old Dominion Liner, "Munroe", was finally ordered
ashore by the Captain but gallantly gave his life preserver to
a woman, missed the last life boat, jumped into the sea and
perished.
"There is a memorial in Battery Park, New York to
heroic radio operators and I believe it shows that between
twenty-five and thirty of them have lost their lives in service. "
XXXXXXXX
RADIO MANUFACTURERS CALLED FOR CODE DISCUSSIONS
Two NRA Code meetings have been called, the first
November 27th, concerning the manufacturers of radio receivers,
transmitting apparatus, including tubes and public address
systems. The second will be held December 4th on all problems
relating to cabinet manufacturing.
As explained by Bond Geddes, a supplemental code for
the former group has been proposed by the National Electrical
Manufacturers' Association. involved in the meeting of the
second group is the future NRA Code status of cabinet manufactur¬
ers, under the electrical and radio, furniture or possibly some
separate code.
A questionnaire was recently transmitted to all manu¬
facturers of radio-electrical products pursuant to the agreement
by NEMA and RMA with the National Industrial Recovery Board for
separate and independent code administration for the radio
industry. The data secured from the questionnaire will deter¬
mine the classification, either in the radio or electrical code
operations, of various parts and accessory manufacturers.
XXXXXXXX
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ANGLE SUCCEEDS TO HEAD OF STROMBERG- CARL SON
Wesley M. Angle, former Vice-President, has succeeded
the late W. Roy McCanne as President of the Stromberg-Carlson
Telephone and Radio Manufacturing Company, of Rochester, N. Y.
Mr. Angle, whom one of his friends judged to be about 50 years
old and characterized as r' the same high type of man as Mr.
McCanne1' , has gone from the ground up with the company which
he joined after his graduation from Harvard in 1903.
George A. Scoville, who also has long been with the
company, was chosen Vice-President, and General Manager, to
succeed Mr. Angle. Lee McCanne, son of the late president,
becomes Secretary and a Director of the company.
Mr. Angle began as a cable machine operator. He was
promoted to Assistant Secretary in 1907, and later Assistant
Treasurer in charge of collects and office manager. Mr. Angle
was elected a member of the Board of Directors in 1914 and at
the same time served as Secretary of the company. He became
Vice-President in 1924.
Mr. Scoville, who now has general supervision of
sales, advertising and engineering, joined the Stromberg-
Carlson Company as Sales Manager in 1916, having previously
been connected with the General Electric Company. He was
elected a Vice-President in 1924. Mr. Scoville is a Director
in the U. S. Independent Telephone Association.
Mr. McCanne was graduated from the Massachuetts Insti¬
tute of Technology in 1929 and has served in the Stromberg Engi¬
neering and Sound System Departments and has been active in
company sales promotion.
XXXXXXXX
N. Y. MAYOR SUGGESTS RESTRICTING LOUD SPEAKERS
Waiting until after the election so that his motives
would not be misunderstood, Mayor LaGuardia has addressed the
following letter to Police Commissioner Valentine with regard
to loud-speakers:
"Now that loud-speakers and amplifiers are pretty
well perfected and in general use, I feel that it is necessary
to curb and regulate their use in the streets of the city.
"The use of loud-speakers during the last election in
many instances reached the point of being a public nuisance. We
can now safely regulate and supervise the use of amplifiers,
embracing also their use in political campaigns. Surely no one
can complain if in the course of political campaigns the use of
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11/20/34
loud-speakers be prohibited after 10 o'clock at night. As long
as the rule applies to everybody, there can be no just complaint.
"In the meantime, please have a study made of the
existing ordinance to see if it is sufficiently broad to enforce
such regulations under existing conditions. If not, please sub¬
mit amendments so that the Board of Aldermen may give it proper
consideration.
"Pending such amendment of the ordinance, if same is
found to be necessary, you will strictly supervise the use of
loud-speakers and amplifiers, particularly perambulating devices
travelling through the streets of the city for advertising or
other purposes. Please keep it down to a very minimum and deny
all permits during the hours of the night. "
XXXXXXXX
HEARST BUYS WBAL
It is reported that in further extending his network,
William Randolph Hearst has bought Station WBAL, of Baltimore,
from the Baltimore Consolidated G-as Company for a figure
approximating a quarter of a million dollars.
X X X X X X X
LUTHERAN STATION TO OBSERVE 10TH ANNIVERSARY
Station KFUO, of St. Louis, will celebrate its Tenth
Anniversary, Sunday, December 9th, 3 to 4:30 P.M. , in a public
service at the Municipal Auditorium, St. Louis. The service
will be broadcast over KFUO. A number of special Anniversary
studio programs will be broadcast throughout the week. A
three-hour DX program will be broadcast, Friday, December 14,
from midnight until 3 A. M. , especially for the benefit of remote
listeners.
Station KFUO of which the Rev. Herman H. Hohenstein
is director, is located on the 72-acre campus of Concordia
Theological Seminary, one of the largest Proteste.nt institutions
of its kind in the country. The Lutheran Church, which owns
KFUO, was founded in 1847, and is divided into 30 districts, 25
of which are in the United States, 3 in Canada, and 2 in South
America. The Lutheran Church numbers over 3,000 active pastors,
and has 70 missionaries in China and India. Station KFUO in¬
creased its service to the public from 2 to 32 broadcasts during
the last ten years.
X XXXXXXXX
5
v V
11/20/34
ROXY TO TRY TO REVIVE PHILADELPHIA THEATRE
Samuel L. Rothafel - the ’’Roxy" of movie and radio fame,
after his ups and downs in New York is to become director of the
Mastbaum, Philadelphia's largest theatre, which has been closed
most of the time for several years. It will be renamed Roxy-
Mastbaum, will be reopened December 24th, and Roxy will be in
personal charge of all stage presentations.
Warner Brothers made the announcement and ended almost
a year's speculation as to what would be the next theatrical
venture of the showman, who of late has been appearing in a com¬
mercial radio hour. It was once even reported, after he quit
Radio City, that he would, in conjunction with others, take over
the lease of the British Broadcasting Company when it expired
and give them a taste of American broadcasting.
Roxy, although new as a theatre director in Philadelphia,
is not new to the Quaker City or Pennsylvania show business. He
got his start in the theatrical game at Forrest City, Pa., near
Scranton.
It was there in 1907 that he put on his first "movie" -
in a vacant store-room, with the audience seated on chairs borrowed
from the local undertaker.
Soon after that, he came to the old Bijou Theater in
Philadelphia and directed motion picture shows. Eventually he went
to New York.
Two things Roxy will be remembered for will be that he
was one of the first in the country to have soldierly ushers. He
drilled his ushers as he was drilled when he was a private in the
Marine Corps. Also Roxy was responsible for all military hospitals
being equipped with radio receivers. His "Gang" originally sup¬
plied those for Walter Reed in Washington but now it is part of
the Government standard equipment.
X X X X X X
BROADCASTERS GO BEAR HUNTING
Phil Loucks, Managing Director of the National Association
of Broadcasters, and Harry Shaw, formerly of WMT, of Waterloo, la. ,
have gone to Canada to hunt bear. J. C. McNary, Technical Director
of the Association, is in charge of the NAB offices during Mr.
Louck's absence.
XXXXXXXX
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11/20/34
ANOTHER CLEAR CHANNEL STUDY MEETING FRIDAY
A second conference will be held Friday, November 23rd,
at the Federal Communications Commission in the clear channel
study planned by the Commission upon which future clear channel
policies will be based. The undertaking will be participated in
by about 35 stations and will involve an expenditure of approxi¬
mately $60,000, one-fifth of which will be paid by the Commission.
Dr. C. B. Jolliffe, Chief Engineer of the Commission,
will be in charge and will be assisted by a sub-committee composed
of his assistant, A. D. Ring; Dr. J. H. Dellinger of the Bureau
of Standards; C. M. Jansky, Consulting Engineer, and several
others yet to be named.
XXXXXXXX
JAMES PROMISES RADIO ADVERTISING FACTS
E. P. H. James, Sales Promotion Manager of the National
Broadcasting Company, speaking on the subject, "Radio Goes Fact
Finding", told the First District Advertising Federation of
America at New Haven, of studies continually being made to dis¬
close the number of listeners at different times, where they are
located, and what they are like.
"The complete story will be ready soon", he said. "In
1935 the advertiser can count on having a plentiful supply of
credible facts about radio. "
All NBC fan mail is now mechanically sorted and tabulat¬
ed. Careful checking shows close agreement between the fan-mail
index of listener distribution and the results of field tests of
radio reception strength. Wherever there is pronounced variation,
he said, it is accounted for by the competition among radio sta¬
tions.
L. E. McGivenor, Promotion Manager of the New York Daily
News, said:
"I must warn you further that buying newspapers is a lot
less fun and satisfaction than buying radio, for instance. This
newspaper publishing on its business side is a pretty dull, drab,
humdrum affair. We have no opening nights. We cannot take you
and Mrs. Advertiser into beautiful offices where everybody is in
evening dress, and show you Paul Whiteman at work, introduce you
to Rudy Valle e, have you shake hands with Eddie Cantor, or make
you acquainted with the cute blonde who does the baby talk
specialty. No celebrities go with your newspaper contract. You
have no excuse for going to New York to see that the schedule
starts off with a bang. We cannot make you a person of consequence
in the artistic, theatrical or night club world.
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"The only possible thrill we have for you is the pos¬
sible change of some red figures to black, and a better profit
statement at the end of the year. There are other results from
advertising - but are there any more worth while than these?"
XXXXXXXX
J OHNSTONE , RADIO PUBLICITY PIONEER, GOES TO WOR
G. W. ("Johnny") Johnstone, in charge of the National
Broadcasting Company :s Press Bureau since the company was organ¬
ized, has resigned to accept a similar position with Station WOP..
Mr. Johnstone began his service with WEAF wdien that
station was operated by the American Telephone & Telegraph Company
at 195 Broadway, in March, 1923. When the NBC was organized, Mr.
Johnstone became Manager of the Press Department and served in
that capacity until three years ago. At that time a reorganiza¬
tion developed a new position for Johnstone, who until his
resignation, officiated as a liaison between the NBC and radio
editors.
Johnstone is personally known to radio editors all
over the country and he goes to his new position with their best
wishes.
X X X X X X
ABS ADDS NEW STATION AT ALBANY
The new radio station in Albany, N. Y. , WABY on 1370
kilocycles, will become a member of the American Broadcasting
System network on December 1. WABY is owned and operated by the
Adirondack Broadcasting Co. , Inc. It will serve the capital
district of Albany, Troy and Schenectady. Richard Osgood is the
Program Director and Norman Sherwood, Chief Engineer.
Plans for a network program dedicated to Station WPRO,
in Providence, R. I. , congratulating the station on the new fre¬
quency, 630 kilocycles, and increased power under which it is
now operating, are being arranged by executives of the A. B.S.
George B. Storer, President of the new network, wall be one of
the principal speakers. A recent survey completed by Commander
T. A. M. Craven and the Washington Institute of Technology on the
power coverage of WPRO on 630 kilocycles with directional antenna
system shows that the geographical coverage in terms of milo volts
is greater than any other Rhode Island station, according to an
ABS statement.
A Midwestern sales office of the network was opened at
230 North Michigan Avenue, Chicago, last Monday.
X X X X X X
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INDUSTRY NOTES
A call for a convention of American manufacturers in
New York on Dec. 5 and 6 to draft recommendations for recovery
that can be presented to the National Administration and the
next Congress was sent out Sunday. The call was issued by fifty
of the Nation's industrial leaders, including James G. Harbord,
Chairman of the Radio Corporation of America, under the auspices
of the National Association of Manufacturers.
Supplementing its recently issued log of short-wave
radiophone stations of the world - a valuable guide to all-wave
set owners who like to tine in foreign short-wave broadcasts - the
Department of Commerce has compiled a new log of broadcasting
stations that operate on the intermediate and long waves. It is
entitled "Foreign Radio Broadcasting Services" and is available
from the Electrical Equipment Division of the Department of
Commerce for 25/ a copy.
Miss Judith Waller and Robert Barrett, NBC; Miss Irene
Sweetland, WGN; Harold Burnett, CBS; William Cline, WLS, and
Philip K. Friedlander, WCFL, along with the newspapermen who
regularly covered A Century of Progressat Chicago, were presented
with gold wrist watches in appreciation of their work in connec¬
tion with the Exposition,
A new type of radio telephone equipment which enables
captains of fishing vessels, harbor craft and yachts to have
telephone service at sea comparable with that on land is being
shown for the first time at the Marine Exhibit, 80 Broad Street,
New York City,
Captains merely pick up a telephone, located for example
in the pilot house, press a button and say "Marine Operator. "
Promptly a voice replies with the familiar "Number Please" and the
call goes through. When the ship itself is called, a selective
device rings its bell but not that of any other ship. The
equipment was dea gned by Bell Telephone Laboratories for the
Western Electric Company.
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Alleging false advertising, particularly in that broad¬
cast over radio stations from Chicago, Los Angeles and Dallas, thg
Federal Trade Commission has cited United Remedies, Inc. , of
Chicago, distributors of "Kolor-Bak", to answer charges of mis¬
representation and unfair competition. The product is advertised,
according to the complaint, as a permanent hair coloring, whereas
the Commission asserts it merely artifically colors the hair and
must be used periodically, as the hair grows, to continue its
effect as a coloring agent.
XXXXXXXXX
STAGE CODE AGAIN PROTESTS FREE BROADCAST ATTENDANCE
A renewed protest against the presentation of free
entertainment by the radio broadcasting companies in Broadway
theatres and their own large studios has been expressed by the
Legitimate Theatre Gode Authority.
A resolution requesting that it be made a condition in
the licensing of all broadcasting stations that they shall not be
permitted to present programs before large audiences was unani¬
mously passed, and a committee composed of Marcus Heiman, Dr.
Henry Moskowitz, Frank Gillmore and William A. Brady, ex officio
member, was named to go to Washington in the near future and place
the matter before the Federal Communications Commission.
Several months ago the same problem was considered by
the Code Authority and virtually the same committee was sent to
Washington to confer with representatives of the notion picture
and radio industries. As a result of that conference the radio
industry's representatives promised to make a survey of the
attendance at free broadcasts as a guide to future action. That
report has not yet been submitted to the Legitimate Theatre Code
Authority.
X X X X X X X
ALL STATIONS JOIN IN WASHINGTON GAMBLING WAR
Frank M. Russell of the National Broadcasting Co. , oper¬
ating Stations WMAL and WRC, Harry Butcher, of Columbia, WJSV,
and LeRoy Mark of the American Broadcasting System, WOL, joined
the newspapers in banning circulation of information on "numbers",
the Capital's leading gambling racket.
In speaking of the policy, Mr. Russell branded the
"numbers" game as a pernicious evil - a "scourge on the poor of
Washington by an organized band of racketeers. "
Mr. Butcher, whil recognizing the right of people to
spend their money as they see fit, called the racket a "sucker's
game. "
"Knowing what I do about the "numbers' racket, the facil¬
ities of the Columbia Broadcasting System are not going to be used
in its furtherance", Butcher said,
U. S. Attorney Leslie C. Garnett has held that suppression
of "numbers" information would helo wipe out the racket.
X X X X X X X X
10
11/20/34
EUROPEAN RADIO DEVELOPMENT
(As revealed in United States Commerce Dept, reports)
Antwerp’s first radio show, held the early part of last
month, was considered very successful, with sales exceeding the
expectation of exhibitors. Only one complete American radio set
was shown at the exhibition, all other exhibits being of national
manufacture, or at least, constructed in Belgium partly from im¬
ported equipment.
High import duties, together with a notable improvement
in the quality of locally produced receiving sets, have brought
about a marked decline in imports of American radios into Belgium.
While there is a tendency towards the entire disappear¬
ance of complete American sets from the Belgian market, there
appears to be an accelerated demand for American parts. Ilany of
the locally-made sets, have been mounted with American tubes, con¬
densers, loudspeakers and other equipment. Two years ago, American
radio sets predominated in Belgium.
The latest estimate of the number of licensed receiving,
sets in the Irish Free State is 54,000, an increase of 9,000 since
December 31, 1933. The license fee for operation of receiving
sets was recently reduced to a flat rate of 10 shillings ($2.50).
a year.
The United States, it is pointed out, is by far the
chief supplier of receiving sets to the Egyptian market, account¬
ing for approximately 60 per cent of the imports. Total imports
from January to July, inclusive, amounted to 14, 917 units, valued
at $456,000.
Recent apprehension with regard to Japanese competition
was not justified. Only slightly more than 300 Japanese sets were
imported into Egypt this year and there is no indication that
Japan will in the near future increase its share.
The increasing popularity of radio in India is largely
attributed to the availability of short-wave programs from local
stations as well as the Empire programs.
India's wireless imports of wireless apparatus, in which
radio sets are included, in the four months ended July 31 were
valued at 380,000 rupees (A rupee equals about 38 cents). Imports
11
11/20/34
from the United States under this classification increased to
159,000 rupees in the April- July period of the current year.
During the first half of this year, Rumania imported
radio sets valued at $172,000, an increase of 40 per cent compared
with the corresponding figure for 1933. While the value of
.American equipment imported is hot given, the report shows that
out of a total volume of 52,000 kilograms imported from January to
June 1934, the United States accounted for more than 15 per cent
and ranked after Germany and Austria.
Advertising by radio in Rumania is limited to short
announcements and slogan words spoken in the intervals between
items on the program. Once or twice a week broadcasts are given
in French and German for the benefit of foreign listeners- in.
XXXXXXXXX
BROADCAST ADVERTISING DISPLACES BILLBOARDS
The bill-posting crew heretofore ahead of " Green Pastures"
theatrical troupe now enroute, has given away to radio broadcasts,
according to reports from the Middle West. Short announcements
are made in the city several days before the show!s arrival. On
the day of the performance, there is a program broadcast by the
Hall- Johnson Choir, which travels with the "Green Pastures"
troupe. Capacity houses are reported.
Miss Klara K. Knecht, Educational Director of the
Hagenback- Wallace Circus, was one of the pioneers of the country
in this work. Miss Knecht travels ahead of the circus and is
famous for her anecdotes about circus performers and interesting
stories of animal life. She has probably spoken over more dif¬
ferent broadcasting stations than any woman in America.
X X X X X X X
12 -
£
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL- Not for Publication
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INDEX TO ISSUE OF NOVEMBER 23, 1934.
Census Not Satisified With Station Business Figures . 2
Hearst WBAL Purchase Figure Higher Than Reported . 3
The FCC Would Blossom Into $2,000,000 Plum Tree . 5
Music Leaders Solidly Oppose More Educational Time . 6
Nice For Frederic Huber* . 10
Radio Has Upper Hand, Says ,!0.H." . 10
Some Recent NBC New And Renewal Accounts . 9
Decisions Of The FCC Broadcast Division. . 11
Army Officer Calls People Telephone-Minded . 12
No. 777
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CENSUS NOT SATISFIED WITH STATION BUSINESS FIGURES
Feeling that they were incomplete and perhaps were not
as thorough and authentic as they might be, the Bureau of the
Census has not officially released the figures designed to show
the volume of the broadcasting industry business. It is just pos¬
sible, not being satisfied with the effort or feeling that suf¬
ficient data had not been obtained that the Census Bureau may
withhold this report permanently.
Nevertheless the tabulation, a copy of which was
secured unofficially, gives food for interesting speculation.
It indicates that the gross income of 374 broadcasters last year
amounted to $55,140,000. Of this amount the 27 stations heard
from in New York accounted for $35,011,000. California was
second, the same number of stations there grossing $2,097,000
for 1933. Illinois was third with $1,800,000. Other States in
the million, or more, dollar class were Massachusetts, Missouri,
New Jersey, Ohio, and Pennsylvania.
The report by States follows with number of stations
in each State parenthetically indicated!
Alabama (6)
Arizona (4)
California (27)
Colorado (10)
Florida (4)
Georgia (10)
I daho ( 4 )
Illinois (21)
Indiana (7)
Iowa (8)
Kansas (6)
Louisiana (8)
Maryland (6)
Massachusetts (13)
Michigan (11)
Minnesota (6)
Mississippi (3)
Missouri (13)
Montana (5)
$ 191,000
Nebraska (10)
$ 325,000
131,000
New Jersey (8)
1,538,000
2,097,000
New York (27)
35,011,000
312,000
North Carolina (7)
252,000
123,000
North Dakota (6)
165,000
242,000
Ohio (14)
1,182,000
66,000
Oklahoma ( 4 )
155,000
1,800,000
Oregon (9)
414,000
223,000
Pennsylvania ( 19)
1,043,000
593,000
South Carolina (4)
72,000
160,000
South Dakota (4)
40,000
311,000
Tennessee (11)
601,000
487,000
Texas (29)
862,000
1,416,000
Utah (3)
280,000
906,000
Virginia (7)
267,000
664,000
Washington (12)
646,000
66,000
West Virginia (3)
56,000
1,093,000
Yifisconsin (13)
749,000
126,000
Others (12)
745,000
Totals (374)
$55,140,000
The canvass of the broadcasting stations was a part of
the Census of America and included the theatrical and moving
picture industries as well
XXXXXXXXX
- 2 -
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11/23/34
HEARST WBAL PURCHASE FIGURE HIGHER THAN REPORTED
Authoritative sources reveal that the purchase figure
of Station WBAL, Baltimore, by the American Radio News Corporation,
a subsidiary of the Hearst Company, was "almost double" a quarter
of a million dollars, as first reported. The price paid by Mr.
Hearst for this choice 10,000 watt clear channel station was
approximated to be $400,000.
The change in ownership will not be effected until after
the contract has been ratified by the Federal Communications Com¬
mission which now has the matter under consideration.
Among the other stations known to be owned by Hearst
are WCAE, 1000 watts, Pittsburgh; KYA, 1000 watts, San Francisco;
WINS, 1,000 watts, New York; and WISN, 250 watts, Milwaukee.
From this it will be seen that WBAL with its 10,000 watts is the
Goliath of the group. It has been rumored that the publisher may
be affiliated math WENR, 50,000 watts power in Chicago following
the removal of KYW to Philadelphia, and that he may soon acquire
stations in other cities.
The stations, as yet, are not operated as a network but
locally in conjunction with the Hearst paper in that city. The
story continues to bob up that M. H. Aylesworth, President of the
National Broadcasting Company, may at some future time become
affiliated with this group. Thomas White, Hearst General Manager,
is credited with the successful consummation of the Baltimore deal.
There is a trend of newspapers towards the purchase of
stations by newspapers. Former Governor, James Cox, of Ohio, has
just bought two stations to be operated in connection with his
newspapers in Dayton and Miami. The first of Governor Cox’s
purchases was WLBW at Erie, Pa. , which will be moved to Dayton and
the other was WIOD, at Miami. Following this the Da.vton Herald
and Journal took over WSMK in that city.
The Cleveland Plain Dealer is reported to own WJAY,
Cleveland, to own 40 percent of WKBN, Youngstown, also an interest
in WAIU, Columbus and to be reaching out for WHK, Cleveland. The
Columbus Dispatch and the Ohio State Journal are understood to
control two stations.
More than 50 stations are newspaper-owned or operated in
the United States, as follows:
KTAR, owned and operated by the Phoenix (Ariz. ) Arizona
Republic and The Electrical Equipment Co. , Phoenix; KM J , Owned by
James McClatchy Co., Fresno, Calif., operated by the Fresno (Calif.)
Bee; KLX. owned and operated by Oakland (Calif.) Tribune Building
Co.; KFBK , owned by James McClatchy Co., Sacramento, Calif., and
operated by the Sacramento (Calif.) Bee ; KPO , owned by Hale Bros.,
Inc., and the Chronicle Publishing Co., San Francisco, Calif.; KWG,
owned by McClatchy Newspapers, Sacramento, Calif., operated by
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Portable Wireless Telephone Co., Stockton, Calif.; WDAE, owned
by the Tampa (Fla.) Publishing Co., operated by Tampa Daily Times;
WSB, owned and operated by Atlanta (Ga. ) Journal ;■ WAAF , owned and
operated by the Chicago Daily Drovers Journal; WG-N, owned and
operated by WG-N, Inc., ( Chicago Tribune ) , Chicago, Ill.; WMAQ ,
owned by WMAQ, Inc. , ( Chicago Daily News) , managed and operated
by National Broadcasting Co. , Inc. ; WHBF, owned and operated by
the Rock Island (Ill.) Broadcasting Co., an affiliate of the
Rock Island Argus; WTRC, owned and operated by Truth Radio Corp. ,
Elkhart, Ind. ; WFAM, owned and operated by South Bend (Ind. )
Tribune ; KSO , owned and operated by the Iowa Broadcasting Co. ,
Des Moines, Studio - Des Moines Register & Tribune Bldg. ; WIBW,
owned by the Capper Publications, Topeka, Kans. ; KFH, owned and
operated by Radio Station KFH Co. , Inc. , Wichita, Kan. ( Wichita
Eagle); WHAS, owned and operated by the Louisville (Ky. ) Courier
Journal and Louisville Times.
Also, WTACt, owned and operated by ’Worcester (Mass. )
Telegram Publishing Co. , Inc. ; WELL , owned and operated by the
Battle Creek (Mich.) Enquirer and News; WWJ, owned and operated
by the Detroit (Mich.) News; WDAF , owned and operated by Kansas
City (Mo. ) Star Company; KSD, owned and operated by the St. Louis
(Mo.) Post-Dispatch; WJAG-, owned and operated by Norfolk (Neb. )
News; KOH, owned by the McClatchy Newspapers, operated by The
Bee, Inc. , at Reno, Nev. ; WBEN, owned and operated by WBEN, Inc. ,
Buffalo, N. Y. ; WESG-, operated by WESG-, Inc. , sponsored by
Elmira (N. Y. ) Star-G-azette , Inc. ; WLTH, owned and operated by
The Voice of Brooklyn, Inc. , Eagle Bldg. , Brooklyn, N. Y, ; WINS,
owned and operated by American Radio News Corp. , New York City;
WWNC, owned and operated by Citizen Broadcasting Co. , Inc, ,
Asheville, N. C. ; WSJS, owned and operated by Winston-Salem (N.C.)
Journal and Twin City Sentinel ; WKY, owned and operated by WKY
Radiaphone Co., (Oklahoma Publishing Co., Oklahoma City); KGW,
owned and operated by the Portland (Ore.) Oregonian; KOIN, ovmed
and operated by KOIN, Inc. , Portland (Ore.) Oregon "Journal.
Also, WSAN, owned by Allentown (Pa. ) Call Publishing
Co., Inc.; WHP, owned and operated by WHP, Inc,, Harrisburg (Pa. )
Telegraph; WQAN, owned and operated by the Scranton (Pa. ) Times;
WFBC, owned and operated by the G-reenville (S.C.) News-Piedmont
Co. ; WTJS, owned and operated by the Sun Publishing Co. , Jackson,
Tenn. ; WMC, owned and operated by WMC, Inc., affiliated with the
Memphis (Tenn.) Commercial Appeal; WFAA, owned and operated by
the Dallas (Tex. ) News and Dallas Journal ; KRLD, owned and operated
by KRLD Radio Corp. ( Dallas , Tex., Times Herald) ; WRAP, owned and
operated by Fort Worth ( Tex. ) S tar- Tele gram; KPRC, owned and
operated by the Houston Printing Co". (Housto'n, Tex. Post) ; WCAX,
owned and operated by the Burlington ( Vt. ) PaTly News; WDEV, owned
and operated by Harry C. Whitehall in connection with the publica¬
tion of the Waterbury (Vt.) Record; WDBJ, owned by Roanoke (Va. )
Times- World, operated by Richard son- Way land Electrical Corp. ,
Roanoke, Va.
- 4 -
11/23/34
Also WH IS, owned and operated by Bluef ield (W. Va. ) Daily
Telegraph; KFIZ, owned and operated by Fond du Lac (Wis.) Reporter
Printing Co. ; WISN, owned and operated by the American Radio News
Corp. (Hearst Newspapers) ; WTMJ, owned and operated by Milwaukee
(Wis.) Journal; WRJN, owned by Racine Broadcasting Corp., oper¬
ated by the Racine (Wis.) Journal- Times; WHBL, owned by and oper¬
ated by the Sheboygan (Wis. ) Press; KG-U, owned and operated by
Honolulu (T. H. ) Advertiser Publishing Co.
XXXXXXXX
THE FCC WOULD BLOSSOM INTO $2,000,000 PLUM TREE
The Federal Communications Commission asking the Bureau
of the Budget for an appropriation of $2,000,000 for the fiscal
year beginning July 1, 1935, represents an appropriation exactly
40 times as large as the amount allotted to the original Radio
Commission which was $50,000. That was in 1928 only six years ago.
However, the Budget Bureau cut the $2,000,000 request in
half but finally compromised on $1,500,000. In addition to this
the Commission, nevertheless, will try to "touch" the forthcoming
Congress for $500,000 to tide it over until July 1st, the last
Radio Commission appropriation of $650,000 having proved inadequate
for the new crowd’s expenditures.
In a moment of expansiveness, a statement was given out
by the Commission a couple of months ago that they hoped in the
near future to build the personnel up to 600 persons (It is now
about 200). However, Herbert Pettey, Secretary of the Commission
evidently fearing that the Commission had tipped its hand, became
"panicky" over this announcement and asked that it be recalled and
all copies destroyed.
It was said in the banned statement that the intention
was to build the Engineering Division up to 174 persons (almost
as many as are now employed by the entire Commission) , the Account¬
ing Division to 160, the Valuation Division to 117 and the others
proportionately.
Although to the casual observer the Commission at present
seems to be badly overmanned and to be packed to the limit with
political appointments, a bulleting of the usually well informed
National Association of Broadcasters says, "Additional personnel
is still needed and will be added as the Commission's appropria¬
tions allows "
XXXXXXXX
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11/23/34
MUSIC LEADERS SOLIDLY OPPOSE MORE EDUCATIONAL TIME
An example of the thoroughness with which the broad¬
casters presented their opposition in the question of whether or
not additional radio facilities should be allocated to educational
and religious stations, now under consideration by the Federal
Communications Commission, was the testimony concerning music
activities in radio presented by Walter Koons, Music Supervisor
of the National Broadcasting Company. It is doubtful if such an
outstanding array of music authorities have on a single occasion
ever been heard from before on the subject of radio. Among
those whose views were presented to the Commission personally or
through Mr. Koons were the following:
Paul Whiteman, Conductor and pioneer in Symphonic
Syncopation; Frank J. Black, General Musical Director, NBC; Dr.
Walter Damrosch, Music Counsel, NBC; Carl Engel, Library of
Congress Music Division; Mrs. Edgar Kelley, National Federation
of Music Clubs; Dr. Howard Hanson, director, Eastman School of
Music; Isidor Philipp, distinguished French pianist; Frank Bridge,
noted English composer; Emma R. Fisher,. President, American Choral
and Festival Alliance; A. Walter Kramer, Editor, Musical America;
Pierre V. R. Key, Editor, Musical Digest; Dr. James Francis Cooke,
Editor, The Etude.
These music leaders unanimously opposed the proposition
of allocating more time to educational programs. Walter Damrosch
said he had grave doubts as to the ability of educational insti¬
tutions to make contributions which would improve or even approach
the musical programs now presented over the air.
"How would they obtain the anormous amount of money
necessary to present such programs?" Mr. Damrosch asked. "I think
that intoxicated by the possibilities of radio, some enthusiasts
have formed a very confused and exaggerated idea of the directions
in which radio can be made a servant of education.
"The real work of teaching young people how to sing or
how to play an instrument or how to compose cannot be done over
the radio but must be carried on by the local teacher in the
classroom who is in constant personal relation with his pupils,
who can correct their faults and examine them as to their programs.
"I do not feel that I have a right to speak of other
sciences, but as far as music is concerned, I do not think that
the colleges and universities and other scholastic educational
bodies can be as well prepared as the present network companies,
for the production of great music on the air for educational pur¬
poses. Accordingly I would view with grave apprehension any
arbitrary allocation of a large percentage of the country's radio
facilities to educational institutions. "
6
11/23/34
"John Philip Sousa once told me that the public came
to his concerts because he entertained them musically and did not
try to educate them", said Mr. Black, NBC's musical director.
"But he also added, 'They could have stayed away and been a dollar
or two richer in pocket', which applies to radio in this sense -
the public can always turn off their radio sets if they are not
being pleased. But by entertaining his audience, Sousa did arouse
an interest in music. I dare say that a great many of this
generation's symphony patrons received their first musical thrills
from those memorable band concerts. More than one has confessed
to me that his path to the concert halls was made smoother by
listening to the March King's rhythms.
"No one can make listeners digest 'high brow' music
until their tastes demand it. Radio has in its short life brought
the musical taste of the American public a great way along the
road toward better music. Not by learned discourses about the
subject but by presenting it as something for the enjoyment and
pleasure of the listener. The public has learned to crawl
musically, and we are helping and hoping to enable it to walk.
"And so for radio.' I end as I began by claiming that it
is unnecessary for us to defend our broadcasting of either popular
or classical music. I merely want to remind those who criticize
us musically that radio can only please all of the people some of
the time and some of the people all of the time - if we tried to
please all of the people all of the time we would end by offending
everybody day and night. "
"I am firmly convinced that wrere it not for radio's
fostering of popular music, it would be quite impossible today for
the networks to broadcast chamber music, symphonic music, and opera
in such increasing quantities", Paul Whiteman told the Commission.
"The law of supply and demand inevitably controls markets. Had
the networks in the past broadcast more of the serious type of
music than the radio audience had been prepared to digest and
assimilate, I seriously doubt if we would be hearing as much
cultural music as we are hearing today. Radio can only instruct
as it entertains - if you cannot ensnare attention and hold it
through entertainment, you have no audience. The fact that the
radio audience is now asking for more good music is the best proof
of what radio has already accomplished in promoting a nation-wide
music culture."
A side-light was Mr. Whiteman's explanation of so-called
"jazz".
"In its early days, *jazz' was a rather crude music
form consisting of a melody more or less banal, with a syncopated
umpety- tump- tump accompaniment plus a 'wild' clarinet, a saxophone,
and perhaps a derby-muted trumpet moaning and groaning out improvis¬
ed conglomeration of noises", Mr. Whiteman related. "Some of us,
however, were quick to visualize the potential possibilities of
developing these counter melodies in a truly musicianly way. It
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11/23/34
also opened the way for us to add to our orchestras new and
interesting tone colors never dreamed of in the days of rag-time.
Scholarly musicians were called upon to make these new and unusual
arrangements which soon came to be known as 'symphonic jazz'.
Such arrangements necessitated larger orchestras and more highly
trained instrumentalists. It is not taxing your memory too many
years to recall the sensation this new style of dance music
created. The serious musicians began to find interest and enjoy¬
ment in a type of music which previously commanded their contempt. "
"If a curtailment or reassignment of the wave lengths
now available is made at the expense of the increasingly fine
programs of music that are being broadcast, the slow and patient
work of years will be destroyed", Mr. Engel, consultant of the
Music Division of the Library of Congress testified
"To deprive the public of even a portion of such
broadcasts as those sponsored by Elizabeth Sprague Coolidge and
the Library of Congress would be a most regrettable calamity."
"The National Federation of Music Clubs is sharing with
the radio networks the responsibility of raising the public's
standard of taste until the time arrives when the larger part of
our public will no longer cry for programs which are an aesthetic
disgrace to the country", Mrs. Kelly explained. "For this reason
in particular, the Federation raises its definite protest of any
suggested legislation that would tend to interfere with or hamper
the great cultural influence that network broadcasting is exer¬
cising today - and will exercise in even greater degree as the
public responds. "
"It is not right to expect perfection in any organiza¬
tion and it is quite possible that there may be criticisms concern¬
ing the place of radio in education, but in my opinion, the progress
which has been made in this field through the present agencies in
radio over the past decade have been so enormous that I am well
satisfied with the results obtained", Howard Hanson declared.
"I know that the effect upon the average American mind
of the vast suras spent for musical programs by commercial interests
has led thousands to form a new concept of the practical useful¬
ness of music in our daily lives", said James Francis Cooke,
Etude editor. "When Mr. and Mrs. Public learn that one great
commercial interest pays as high as $1,000,00 a minute for an
hour of music of the highest character and feels that it is good
business to do this, they form a new regard for the desirability
of a musical training for their children."
XXXXXXXX
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11/23/34
SOME RECENT NBC NEW AND RENAWALS
NEW- Dr0 Miles Laboratories, Inc. ( Alka-Seltzer) ,
Elkhart, Ind. ; Agency - Wade Advertising Agency, Chicago, Ill.;
Started Nov. 19. 1934; Mon. Wed. Fri. , 7:45-8:00 P.M. EST; Network-
WEAF WEE I WTIC WJAR WTAG WCSH WFI-WLIT WFBR WRC WGY WBEN WCAE WTAM
WWJ WSAI WMAQ KSD WHO-WOC WOW WDAF ; Program - ''Uncle Ezra",
dramatic program.
NEW - Associated Oil Co. (Gasolines & Motor Oils),
San Francisco, Cal. ; Agency - Lord & Thomas, San Francisco, Ca.1. ,
Nov. 24, 1934 only, Saturday^ 4:45 P.M. to approx. 7:45 P.M. EST;
Network - WJZ WBAL WML WBZ WBZA WSYR WHAM WGAR WJR KWCR KSO
( WENR WKY 5:30-7:45) (WREN WFAA 5^45-7:45) FOIL KTBS KPRC (WOAI
4; 45-7: 30) KOA KDYL KPO KFI KGW; Program California Stanford
Football Game.
NEW - National Biscuit Co. (Bakery Products), 11th Ave.
& 14th St., New York City; Agency - McCann Erickson, Inc., New
York City; Starts Dec. 1, 1934, Saturdays 10:30 P.M. to 3:30 A.M.
EST, 10:30 P.M. to 4:30 A.M. Daylight Saving Time; Network -
10:30-1:30 - WEAF WEEI WTIC WJAR WTAG WCSH WFI-WLIT WFBR WRC WGY
WBEN WCAE WTAM WWJ WSAI WMAQ KSD WHO- WO C WOW WDAF WTMJ WIBA KSTP
WEBC WDAY KFYR WRVA KPRC WPTF WWNC WIS WJAX WFLA-WSUN WIOD WAVE
WSM WMC WSB WAP I WJDX WSMB KVOO WKY WFAA-WBAP WOAI KTBS KTHS;
1200-2:30 KOA KDYL; 12:30-3:30 KGO KFI KGW KOMO KHQ KF3D KTAR;
Program - Three bands furnishing continuous dance music.
RENEWAL - Firestone Tire & Rubber Co. , Akron, Ohio;
Agency - The Sweeney & James Co. , Cleveland, Ohio; Starts Dec. 3,
1934, Mondays 8:30-9:00 P.M. ES? and 11:30-12:00 Midnight EST;
Network - 8:30 - WEAF WEEI WTIC WJAR WTAG WCSH WLIT WFBR WRC WGY
WBEN WCAE WTAM WWJ WLW WMAQ WOC WHO WOW WDAF WKBF CRCT CFCF WTMJ
KSTP WIBA WEBC WDAY KF.YR WPRF WWNC WIS WJAX WIOD WFLA WSOC WTAR
WEM WMC WSB WJDX WSMB WAVE KVOO WKY KPRC WOAI KTBS; 11:30 - KPO
KFI KGW KOMO KHQ KF3D KTAR KGU KOW KDYL KGIR KGHL; Program - "The
Voice of Firestone" - orchestra and guest artists.
NEW - Kaempfer's (Bird Seed), Chicago, Ill.; Agency -
C. Wendel Muench & Co. , Chicago, Ill; Started Oct. 30, 1934, Tues.
Thurs. 9:00-9:15 A.M. EST, WEAF Only - Program - "Kaempfer 1 s" -
Mr. Provol, singing canaries and piano accompaniment.
NEW - Penn Tobacco Co. (Kentucky Winners Cigarettes),
'Wilkes Barre, Pa. ; Agency - Ruthrauff & Ryan, New York City;
Started Nov. 21, 1934, Wednesday 10:30-11:00 P.M. EST; Network -
WEAF WTAG WJAR WCSH WLIT WFBR WRC WGY WBEN WCAE WTAM WWJ WSAI
WKBF WMAQ KSD WOW WMC WSB WAP I WJDX WSMB WAVE; Program - "One
Man's Family" - dramatic.
XXXXXXXXXX
9
11/23/34
NICE FOR FREDERIC HUBER!
A really nice compliment was paid to Frederic R. Huber,
Director of Station WBAL, Baltimore, when G-overnor-elect Harry
Nice, the Republican who defeated Governor Ritchie for reelection
in Maryland, asked Mr. Huber to direct his Inaugural ceremonies.
It came all the more as a tribute to Huber because, though
for years Municipal Director of Music in Baltimore and a leading
figure in public affairs, he has kept himself free from political
alliances and therefore the selection had no political signif¬
icance.
While Mr. Huber has directed five mayorality inaugura¬
tions in Baltimore and assisted at two previous inaugurations of
Governor Ritchie, this will be the first time he will be in
entire charge of the State function.
XXXXXXXX
RADIO HAS UPPER HAND SAYS "O.H."
"Naturally the newspaper publishers stand a little
aghast and uncomprehending, in considering why they should share
their news, collected at great expense, with the radio broad¬
casters for advance dissemination to the listeners", 0. H. Cald¬
well editorializes in Electronics.
"The publishers' objections are thoroughly reasonable
from their standpoint. News is property, valuable property,
which must be merchandised while it is fresh. And naturally the
newspapers want to protect their own channels of distribution.
"But what the newspaper men do not seem to realize is
that a new means of disseminating news has overtaken their own
slower processes of printing-press, train, truck, and delivery
boy. News can now go to the home directly and with the speed of
light. Viewed as a multiplier and spreader of information, radio
and facsimile are as far ahead of the printing press, as the
modern newspaper perfecting press is ahead of Franklin's early
hand-press. Shortly facsimile printers will be producing little
newspapers in the home, as clear and sharp as those coming from
the press.
"The public will demand news over these faster agencies,
aural and visual, whether that news comes from the older news¬
paper sources or from new news-gathering organizations. The news¬
papers are suddenly finding their vast plant investment overtaken
by technological obsolescence. It is up to them now to make the
best deal they can, with the new conqueror of time and space.
For radio ha.s the upper hand. "
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DECISIONS OF THE FCC BROADCAST DIVISION
Applications Granted.
'^November 20, 19347
WHBF, Rock Island Broadcasting Co. , Rock Island, Ill. ,
C.P. to make changes in equipment and increase day power from
100 to 250 watts; WHBY, WHBY, Inc., Green Bay, Wis. , C.P. to
install new equipment and increase day power from 100 to 250 watts;
WJBO , Baton Rouge Broadcasting Co., Inc., Baton Rouge, La., modifi¬
cation of C.P. to extend completion date from Dec. 1, 1934 to Feb.
1, 1935; KOL, Seattle Broadcasting Co. , Inc. , Seattle, Wash. ,
modification of C.P. to extend completion date to Dec. 25, 1934;
WTAR , WTAR Radio Corp. , Norfolk, Va. , modification of license to
increase day power from 500 w. to 1 KW; KVOA, Arizona Broadcasting
Co. , Tucson, Ariz. , modification of license to change hours of
operation from specified to unlimited; WDSU, Joseph H. Uhalt, New
Orleans, La., voluntary assignment of license to WDSU, Inc.; WAGF ,
Dothan Broadcasting Co, , Dothan, Ala. , special exp. authorization
to operate from LS to 6:30 P.M. daily until Jan. 1, 1935.
Miscellaneous
WMCA, Knickerbocker Broadcasting Co. , New York City,
denied petition to reconsider and grant the application of WMCA to
increase power from 500 watts to 1 KW, and application of WSYR to
increase power from 250 to 500 watts, install new equipment and
move transmitter locally ( WSYR, Central, N.Y. Broadcasting Corp.,
Syracuse, N. Y. ) ; New, Montana Broadcasting Co., Helena, Mont.,
denied petition to reconsider and grant application for new
station to operate on 1420 kc. , 100 watts, specified hours; WTM J ,
the Journal Company, Milwaukee, Wis. , denied petition to reconsi¬
der application to increase night power from 1 to 5 KW; the appli¬
cation of WTMJ to increase day power from 2-g- to 5 KW was granted
Oct. 30, 1934, but that part requesting increase in night power
was designated for hearing; WCSH, Congress Square Hotel Co. ,
Portland, Me. , denied petition of WCSH to reconsider and grant
without hearing, their application to increase daytime power
from 2-| to 5 KW;
Also, KVOD, Colorado Radio Corp. , Denver, Colo. , denied
petition to reconsider and grant application to increase and grant
application to increase day power from 500 watts to 1 KW; WACO ,
Central Texas Broadcasting Co., Inc., Waco, Texas, reconsidered
and granted without hearing, application of WACO to increase hours
of operation f rom specified to unlimited; KECA, Earle C. Anthony,
Los Angeles, Cal. , reconsidered and granted application to increase
daytime power from 2-g KW to 5 KW; KRKD, Radio Broadcasters, Inc.,
Los Angeles, Cal. , reconsidered and granted application to increase
power from 500 watts to 2-g- KW, and dismissed that part of applica¬
tion to increase night power to 1 KW; WLLH, Albert S. Moffat, Lowell,
Mass. , reconsidered and granted application to increase hours of
operation from specified to unlimited.
11 -
T* • . ‘ 1. 1
11/23/34
KPRC, Houston Printing Co. , Houston, Texas, reconsider¬
ed and granted application to increase daytime power from 2\
KW to 5 KW, application to increase night power to remain in
hearing docket; KDYL, Intermountain Broadcasting Corp. , Salt
Lake City, authority granted to intervene in hearing in re
application of Utah Radio Educational Society to construct a new
station at Salt Lake City to operate on 1450 kc. , 1 KW, unlimit¬
ed time; New, Portland Broadcasting System, Inc., Portland, Me.,
granted petition to intervene in hearing of the application of
Congress Square Hotel Co. ( WCSH) for modification of license to
increase power to 5 KW day; W. J, REYNOLDS, Jr. , Selma, Ala.,
granted request to take depositions in re application in hear¬
ing Docket No. 2604, set before an examiner on Dec. 6.; WIEH ,
Knickerbocker Broadcasting Co. , Inc. , Portable, and XILB, Inter¬
national Broadcasting Corp., Portable, granted renewals of
broadcast pickup station license in temporary service for period
Nov, 1, 1934 to Nov. 1, 1935, in exact conformity with existing
license; W8X0, The Crosley Radio Corp., near Mason, Ohio,
granted renewal of special exp. station license in exact con¬
formity with existing license.
XXXXXXXXXXX
ARMY OFFICER CALLS PEOPLE TELEPHONE-MINDED
In an article, "Is the Telegraph Being Utilized Suf¬
ficiently by the Division and Lower Units?”, in the Army Signal
Corps Bulletin for November-December, Ca.pt. J. B. Sweet writes,
in part:
''Another obstacle to the use of the telegraph (in the Signal
Corps) is too great dependence on the telephone. The American is
telephone-minded. He prefers the telephone to a pencil and mes¬
sage pad. He wants to deliver his message personally rather than
write it out and turn it over to someone else to be sent by tele¬
graph, radio or some other means.
"General Gibbs has said: ’For quick consultation, involv¬
ing a rapid exchange of thoughts or of questions and answers, the
telephone is in a class by itself. The average American of today
doesn't need to be urged to use the telephone. He does need very
badly to be taught when not to use it, and how to use it exped¬
itiously and get through so that someone else can get a circuit. ’
"Colonel Seoane, of the Signal Corps, has said:
"’The psychology lies in the satisfaction that comes to the
sender when in personal contact, by telephone, he knows that his
message has been received and understood. ’
"General Squier, in his report for 1919 as Chief Signal
Officer, in discussing the signal communications of a certain
American division in the St. Mihiel attack, stated: ’Radio com¬
munication was practically continuous but it was seldom used.
The American has learned to think in terms of the telephone, and
so it was natural for a brigade commander whose telephone lines
had been shot out, to send this radio message: "I am absolutely
out of all communication. " 1 "
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF NOVEMBER 27, 1934
"Amos ’n' Andy" Also Send McDonald Guest Yacht Bill . 2
Clear Channel Survey Recording Stations in 10 Cities . 3 t/
Communications Mergers Up For Discussion* , . 5
Broadcasters Urge Closer Cooperation With Educators. . 6
KYW Opens In Philadelphia Next Monday
Comparative Transmission Calamities. .
Code Authority Reins In On Free Time Programs . . . 10 —
Spectators Prevent ABS Army-Notre Dame Broadcast . 11
Some New Future Columbia Accounts And Renewals. . li
No. 778
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LEGAL DEPARTMENT
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November 27, 1934
"AMOS 1 N 1 ANDY" ALSO SEND MC DONALD GUEST YACHT BILL
Not to be outdone by the artist, McClelland Barclay,
who sued Commander E. F. McDonald for making drawings while a
guest in Chicago on McDonald’s famous yacht "Mizpah", "Amos 'n'
Andy" sent in an even larger bill. Mr. Barclay demanded $2,800
for his work but the famous comedians, whose names in a matter
as important as this are Freeman F. Gosden ("Amos") and Charles
J. Correll ("Andy"), more than doubled the figure.
The boys were on tour in New York but lost no time
addressing the following letter to the well-known yachtsman and
explorer:
"Commander E. F. McDonald, President,
Zenith Radio Corporation,
Chicago, Illinois.
"Dear Commander :-
"Will you please let us have your check for $6,500.00 for enter¬
tainment on board your ship as follows: —
"During the summer of 1932 — 33 — 34 to wit:--
"Six Sunday afternoon cruises which included us
entertaining your guests by listening to their
jokes.
"Shooting targets from your aft deck thereby enter¬
taining your guests.
"Eating your food.
Lounging around boat.
Sleeping in your beds during one week end cruise
to White Lake, or Black Lake, or both,
"Suffering great humiliation from speed boat ride
in your speedboat while anchored in White Lake, or
Black Lake, or both, with you at the wheel.
"One of us blowing up balloons with gas while the
other one shot them.
"Pulling clay pigeon target holder for you and
your guests to shoot.
2
11/27/34
"Being forced to meet people of prominence aboard
ship.
"Getting off board and going home when we didn’t
want to go.
"Hope this matter can be settled without the aid of counsel.
Will you please mail your check to our office in Chicago?
"Yours very truly,
(Signed) "FREEMAN AND CHARLIE"
In his answer to Barclay’s suit, Commander McDonald
asserts that the sketches made by Barclay were done for pastime
while the artist was a guest on the "Mizpah" , and were unsolici-
tated. In fact, the answer states, McDonald unwillingly accepted
one of the sketches "to keep from hurting Barclay's feelings."
The answer further alleges that on the other hand,
Barclay owes Mr. McDonald $1,650 for services performed by the
sportsman and for commissions which Barclay failed to complete
for replicas of the McDonald $10,000 outboard motor trophy.
Commander McDonald said laughingly that future guests
on board his yacht would be required to sign releases so that
"if while on board they draw any pictures, make any photographs,
play the piano, the piccolo, the accordion, or the bass viol,
sing or dance, they will not later send me bills for the enter¬
tainment. "
xxxxxxxx
CLEAR CHANNEL SURVEY RECORDING STATIONS IN 10 CITIES
In connection with what will be the most systematic
and thorough effort ever made to ascertain broadcasting condi¬
tions in this country, field intensity recording stations will
be established in or near 10 cities of the United States. These
stations will cost from $2,500 to $3,000 apiece and though the
exact sites have not been chosen, they will be located in the
vicinity of Boston, New York, Washington, Seattle, Los Angeles,
Chicago, Dallas, Grand Island, Nebr. , Denver and Atlanta.
Primarily it will be a survey of the so-called "clear
channel" (i.e. only one station on that frequency) broadcasting
stations and will be made for the purpose of determining the radio
service available to the people of the country and the type of
station that the listeners in rural areas are dependent upon for
their service. The degree of interference or impairment of
service caused by duplication of certain high power stations is
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11/27/34
to be investigated, as well as the possibility of providing
additional higher power stations without reducing the service to
the listening public from existing stations.
The survey will cost upwards of $60,000, of which the
stations will pay four-fifths and the Government one-fifth of the
cost. It will be conducted continuously on a 24-hour basis for
six months through the Winter and Spring months. The work will
probably get under way the latter part of December 0
According to Andrew Ring, Assistant Chief Engineer,
J. C. McNary, Technical Director of the National Association of
Baordcasters , will be the "grand co-ordinator". However, Mr.
McNary, with his customary modesty, brushed this aside saying,
"All I'm going to do is to buy the apparatus and am doing that as
a matter of convenience to stations who are NAB members. Mr.
Ring will be the real skipper.
"We will be mainly concerned with the intensity of the
signal and will make a continuous record of the signals from
the clear channel and other stations so as to get a picture of
what service these stations actually render to the listeners.
It will be a 24-hour chart and after such a record as that has
been made, there can be no arguments."
Mr. McNary said that the field recording intensity
station in Washington will be located in the Field Station of
the Bureau of Standards at Meadows, Md. , between the Capital
and Baltimore.
"They must necessarily be in some quiet place", the
Broadcasters' technical expert explained. "I think most of them
will be in farm houses where there is as little electrical and
other disturbance as possible. "
An exception to this will be apparatus to be set up
at Grand Island, Neb. , for here is located the Federal Communica¬
tions Monitoring station, the choicest radio spot in the United
States, and said to be the world's most perfect listening post.
The station is 150 miles from Omaha. The antennas cover 50
acres and the plant about $200,000 to erect. From this station
engineers listen the world over, study air programs, and not
only check our own stations but see whether or not foreign sta¬
tions are maintaining their assigned frequencies.
The captains who will be in charge of the work in the
different parts of the United States are: First Zone - C. W.
Horn, National Broadcasting Company, New York City; Second Zone -
Joseph A. Chambers, Chief Engineer, Station WLW, Cincinnati;
Third Zone - J. H. DeWitt, Jr. , W3M, Nashville and Fourth Zone -
Carl Meyers, WGN, Chicago. The Fifth Zone will be temporarily
represented by Louis Caldwell, counsel for Station KFI, Los
Angeles.
4
11/27/34
Technically the tentative plan of the clear channel
survey as suggested by the Engineering Division of the Commission
involves four lines of endeavor, as follows - Continuous field
intensity recordings of clear channel stations, the records to
be made at distances varying from 1000 to 3000 miles; an analysis
of duplicated clear channels (such as 790 kilocycles occupied by
WGY, Schenectady, and KGO, Oakland, Calif.), with complete deter¬
mination of radiation characteristics of the individual stations
as well as determination of the field intensities and service
rendered in the areas between stations; Field intensity measure¬
ments made in rural districts throughout the United States with
correlation with listener habits as determined by personal in¬
vestigation, and listener habit survey of rural audiences to be
conducted by mail, by the Commission,
Among the stations which have offered cooperation in the
form of field intensity measuring or recording aoparatus, trucks,
personnel, etc. , were WSM WSB WLW WGN WSPD KYW KFI WJR WWL WFLA
KNX WHAM WCAU WFAA WSB WGY WLS WOAI, and WNAC, Boston,
All stations, however, will be afforded an opportunity
to participate in the survey and if they so desire to share a part
of the expense. Altogether, it will be one of the most compre¬
hensive radio surveys ever attempted and based upon the findings
there may be a great increase in power, and clear channels
may or may not be broken down.
XXXXXXXX
COMMUNICATIONS MERGERS UP FOR DISCUSSION
Proposed mergers affecting the Western Union and the
Postal, also the RCA and Mackay will be discussed at hearings
of the Telegraph Division of the Federal Communications Commission
to begin Monday, December 3rd.
As set forth by the Commission, the purpose of these
hearings is to assist the Federal body, first, in deciding whether
the Commission should recommend to Congress the enactment of laws
authorizing the consolidation or merger of communications com¬
panies with each other and, second, in the event such recommenda¬
tions are to be made, in deciding what safeguards and conditions
are to be stipulated in carrying them out.
XX XXXXXXXX
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11/27/34
BROADCASTERS URGE CLOSER COOPERATION WITH EDUCATORS
An 82-page printed brief, believed to be the most com¬
plete presentation of its kind ever made in the history of the
broadcasting industry, has been filed with the Federal Communica¬
tions Commission in behalf of the National Association of Broad¬
casters following the hearings on the question of whether or
not additional radio facilities shall be allocated to educational
and religious and other non-profit making stations. The brief-
prepared by Henry Adams Bellows, Chairman of the Legislative
Committee and submitted by Philip G. Loucks, Managing Director,
carried with it the following conclusions:
What the Record Shows -
"1. The facilities for radio broadcasting in the United
States are at present definitely limited by physical facts, and
are used to approximately their full capacity. No material ex¬
tension of these facilities through the application of new techni¬
cal methods seems sufficiently imminent to warrant present con¬
sideration. It follows, therefore, that increased broadcasting
facilities for any form or type of service can be provided at
present only at the expense of services now authorized to use
those facilities. This applies whether term ’facilities' is de¬
fined as including all the elements of broadcast allocation, or
as meaning broadcasting time only.
"2. Broadcasting hours and, in a wider sense, broadcasting
facilities of any sort, are of little value without an established
and maintained audience. It follows that any allocation of facil¬
ities which are not used in the service of a considerable and
interested audience constitutes a waste of such facilities.
"3. Commercial broa.dcasting service in the United States
is designed to give a widely varied program service to the entire
population which is able to receive such service. It seeks to
give due consideration to the desires of all significant minori¬
ties, while at the same time always considering the tastes and
wishes of the public as a whole. In carrying out the policy just
outlined, commercial broadcasting has cooperated, and has express¬
ed willingness to cooperate still further, with many and varied
types of non-profit organizations, and in most instances has done
so to their complete satisfaction.
“4. It is impossible to determine the character or value
of a broadcast program merely by its origin or sponsorship, and
it is manifest from the record that much of the finest service
which broadcasting is rendering to the public in the field of
education has been instituted and is now maintained by the broad¬
casting companies themselves.
"5. It is manifest from the record that there has been a
steady and progressive improvement in the general quality of radio
programs, corresponding to a definite improvement in public taste
as a result largely of the opportunities which broadcasting has
afforded for the enjoyment of good programs.
"6. It is clear that any form of preferential allocation of
broadcasting facilities, based either on type of program service
or on classification of licensees, would involve the federal govern¬
ment in complex problems of determining program service values,
6
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11/27/34
necessitating a considerable degree of indirect but effective
government censorship.
"7. The record melees it clear that, with the rapid and
still unpredictable development of radio communication, the
adoption of any governmental policy which would restrict or
hamper such development would be disastrous, and that greater
stability is universality desired.
!,8. It is apparent that the test of public interest, con¬
venience, or necessity established by law can be properly applied
only on the basis of individual cases, when and as applications
for licenses or renewal thereof are submitted.
'*9. It is clear from the record that the interests of the
public will best be served by closer and more widespread cooper¬
ation between the commercial broadcasters and the many groups
primarily concerned with public education in its broadest sense,
and that such cooperation should be directed toward the develop¬
ment cf more effective methods for the use of broadcasting in the
general service of education.
Recommended Findings -
"Since, therefore, the record clearly shows that Ameri¬
can broadcasting is rendering, and stands ready to render, every
service in behalf of education that is generally desired; since
greater stability is universally recognized as essential to the
proper development of broadcasting service to the public; and
since any form of preferential allocation based on any consider¬
ation other than that of general service to the public as a whole
is manifestly wasteful of broadcasting facilities and also in¬
volves such governmental supervision over program material as
implies material censorship, it follows;
"1. That the Federal Communications Commission, pursuant
to the instructions given to it by Congress in Section 307(c) of
the Communications Act of 1934, should recommend to Congress
that in its judgment it is neither necessary nor desirable that
Congress should, by statute, allocate fixed percentages of
broadcasting facilities to non-profit organizations or programs.
"2. That the Federal Communications Commission should not,
either under its present authority, or under authority which
might be conferred upon it by subsequent legislation, undertake
any such preferential allocation of broadcasting facilities.
"3. That the Federal Communications Commission should
encourage the development of American broadcasting by increasing
its stability through the granting of licenses for materially
longer periods than at present.
"4. That the Federal Communications Commission should
actively encourage closer and more widespread cooperation between
the commercial broadcasters and the groups primarily concerned
with the broader aspects of education, to the end that American
broadcasting, with all the advantages of competitive ownership
and operation, may make still more rapid progress in the future
toward providing a completely satisfactory service to the people
of the United States. "
7
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In introducing the brief, Mr. Bellows wrote as follows:
"The record of the hearings before the Broadcast Divi¬
sion of the Federal Communications Commission pursuant to
Section 307(c) of the 1934 Communications Act constitutes the
most significant statement ever made of the aims, purposes and
methods of radio broadcasting as conducted on the basis of com¬
petitive private initiative. Its more than fourteen thousand
pages of testimony and evidence eloquently relate the services
which American broadcasting, conceived and maintained in accord¬
ance with American traditions, is rendering to the people of
this country.
"The brief submitted on behalf of the National Associa¬
tion of Broadcasters is a condensed digest of this record. It
points out, from the mass of evidence presented, the salient
features. Citing the testimony of scores of leaders in the use
of broadcasting for the public welfare, both within and outside
of the broadcasting industry itself, it shows that American broad¬
casting has built up and is steadily increasing that vast audience
without which broadcasting is a futile waste of invaluable
facilities.
"In every field of endeavor for human betterment, in
education, in religion, in charity, in the spread of political,
social and economic understanding, in the service of labor and
agriculture and the home, the great majority of representative
leaders, both national and local, are glad to testify that American
broadcasting, competitive and therefore free, aids them in a man¬
ner and to an extent which under any other system would be
utterly impossible.
"More than this, the record shows that American broad¬
casting, precisely because it is conducted as a highly competitive
business, goes far beyond merely placing its facilities at the
service of others, and definitely creates a service of its own.
It brings to every radio-equipped home the voices of the world’s
leaders in thought and action, the music that, a decade ago,
could be heard only by the privileged few, the best in entertain¬
ment that the whole world affords. With this it combines a local
service to every considerable community, a service built up by
years of exioerience and close contact with local problems.
"The record shows that this service of American broad¬
casting to the public has been created and maintained by the
initiative of American citizens, regulated only in so far as the
wisdom of Congress saw from the outset that regulation was essen¬
tial to avoid chaos. It shows that under no other possible
system could the public have the benefit of such wide access to
the world's best program talent, or of such freedom of expression
for all that is most truly representative of our national life.
"Only a comparatively few are recorded as recommending
any essential change in the American system of broadcasting, and
among those few there is little evidence of clear agreement.
Against them stands the overwhelming record of how American broad¬
casting serves the people, a record established in large part by
the testimony of those whose purpose is, in the broadest sense of
the word, education.
- 8 -
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11/27/34
"That neither Congress nor the Federal Communications
Commission should destroy or impair this service to the public
is the one conclusion to which the entire record leads. It is
made manifest that any system of allocation which considers the
desires and special objectives of individual organizations
rather than the wishes of the people as a whole would thus destroy
or impair this service.
’’Nowhere in the record is it asserted that American
broadcasting today rests content with its achievements; rather,
it is made clear that every broadcaster looks forward to still
greater service to the people who, as listeners, must always be
the final arbiters. But the record is far more than a vindica¬
tion of American broadcasting; it is conclusive proof that the
initiative and vital energy of a new and great American industry
are rendering such a service in the broad education of our people
as, on any other bp.sis, could not possibly have been realized. ,f
XXXXXXXXXX
KYW OPENS IN PHILADELPHIA NEXT MONDAY
Transferring its activities from Chicago, . where for
many years it was located, KYW, Westinghouse radio station, will-
start broadcasting officially in Philadelphia at 6:45 A.M. Monday,
December 3. A special dedication program, featuring more than
100 stars of the radio, stage and screen, is planned for 7:30
o’clock the same evening.
In moving the station to Philadelphia, Westinghouse
engineers have provided it with new transmitting equipment. It
will operate on a frequency of 1020 kilocycles and 10,000 watts
power, from a transmitting station at Whitemarsh, Pa. The
studios and'\ executive offices of the Philadelphia Broadcasting
Company, program manager of KYW, will be at 1622 Chestnut Street,
with Dr. Leon Levy, President of WCAU, as General Manager. Dr.
Levy also will continue as head of WCAU. Carol Irwin will be
program director and Helen Wood, director of advertising.
As a member of the National Broadcasting Company, KYW
will be the Philadelphia outlet for the NBC-WEAF red network.
X X X X X X X
COMPARATIVE TRANSMISSION CAL AM AT I ES
It is pretty sad when a 500 watt tube falls with a
crash - but did you ever watch a 10 kilowatt watercooled tube
puncture and fill up with green water right to the top? - R/9,
Los Angeles.
XXXXXXXXX
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11/27/34
CODE AUTHORITY REINS IN ON FREE TIME PROGRAMS
James W. Baldwin, Executive Officer of the Broadcast-
ing Code Authority, has addressed the following letter to Mr.
Daniel Henderson, Director of Promotion of the Cosmopolitan
Magazine :
’’This is to inform you that we consider the terms
and conditions contained in your letters to radio
broadcasting stations for the presentation of Cosmo-
politan Radio Dramas an attempt to frustrate the pur¬
pose and. intent 6T~”the Code of Fair Competition for
the Radio Broadcasting Industry, and radio broadcast¬
ing stations will be advised accordingly. "
"This will serve as notice to the stations and network
companies", Mr. Baldwin advises broadcasters, "that the presents.'
tion of these Cosmopolitan programs will be considered in viola¬
tion of the free time provision of the Code. "
The following letter has been addressed by Mr.
Baldwin to Radio Guide concerning the release sent out by that
publication with reference to the "* * * , the most sensational
silverware offer ever made - a grand distribution of patriotic
and useful State Seal souvenir spoons. A spoon for every
State. A spoon for every week. A spoon for every reader":
lrOur attention has just been drawn to a letter
signed by you under date of October 14, 1934, enclos¬
ing an announcement of a matter which will appear in
Radio Guide, issue dated ’Week Ending October 27th.’
Your statement: 'If you can find time to present this
announcement on the air over your Station we shall be
very grateful for the courtesy', by implication seeks
I to obtain free time. As one of the important radio
publications, we solicit your cooperation in the
stabilization of the rate structures of all radio
broadcasting stations. The most effective way to
contribute to such stability is for you to discontinue
attempts like this one to gain free radio advertising. "
"Members of the industry complying with requests such
as this one", Mr. Baldwin says addressing the industry, "violate
the free time provision of the Code. "
"The Code Authority has auditioned Program No. 1
entitled "The American Magazine Program" and finds that the
programs contain lines of definite commercial value to the
American Magazine . Broadcasting Stations and Network Companies
are, therefore, directed to refuse to broadcast these programs
on a sustaining basis."
XXXXXXXX
10
11/27/34
SPECTATORS PREVENT ABS ARMY- NOTRE DAME BROADCAST
George B. Storer, President of the American Broadcast¬
ing Company sent the following explanatory telegram to his follow¬
ing network stations regarding the interruption of the ABS broad¬
cast of the Army-Notre Dame football game last Saturday;
"Spectators of the game interfered with our broadcast¬
ing of the Army-Notre Dame game this afternoon, assaulted our
announcers and engineering staff, and damaged our equipment, with
the result that it was impossible to broadcast. Subsequently
arrests were made, and the matter will be prosecuted. Any
profanity heard over the air was on the part of the spectators
who assaulted our staff. We deeply regret this occurrence and
hereafter police protection will be provided to prevent its
recurrence. "
A press dispatch from New York later added that two on¬
lookers, described as Andrew Sokol and George L0 Armour, both 36
and residents of New York, allegedly objected with blows to the
presence of the announcing staff in their box. The scuffle wreck¬
ed the equipment and cut off the broadcast. Sokol and Armour
were arrested on charges of malicious mischief and released on
$750 bond.
X X X X X X X X
SOME NEW FUTURE COLUMBIA ACCOUNTS & RENEWALS
Acme White Lead and Color Works, Detroit, Mich. , - paints
and varnishes, starting January 6, 1935; Air time - Sunday, 6:30
to 6:45 P.M. EST; network of 22 stations originating WKRC, Cincin¬
nati; Program - Smiling Ed McConnell; Agency - Henri, Hurst &
McDonald, Inc. , Chicago.
The Norsec Co. , Jersey City, N. J. ; product - Norsec
toothpaste; Starts December 3, 1934, Mon. Wed. & Fri. - 12:30 to
12:45 P.M. EST; Network - Albany, Boston, Buffalo, Hartford, New
York, Philadelphia, Providence, Syracuse, Bridgeport, originating
in WABC, New York; Program - Gossip Behind the Microphone (Wallace
Butterworth) ; Agency - Stack-Goble Adv. Agency, Chicago, Ill.
Lehn & Fink Products Co. , New York; Product - Pebeco
toothpaste, starting Feb. 3, 1935, Sunday - 3 to 8:30 P.M. EST,
50 stations coa.st-to-coast , originating WABC, New York; Program -
Musical and Eddie Cantor; Agency - Lennen & Mitchell, Inc., New
York.
Lehn & Fink Products Co. , New York; Product - Lysol
disinfectant and Hind's Honey & Almond Cream, starting Jan. 6,
1935, Sunday - 8 to 8:30 P.M. Jan. 6 to 27, Sunday - 8:30 to
9 P.M. Feb. 3 and thereafter, 50 stations coast- to-coast , originat¬
ing WABC, New York; Program - Hall of Fame; Agency as above.
X X 2 X X X X
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
L M DtC 4
4
INDEX TO ISSUE OF NOVEMBER <30, 1934,
''Much Fine In Radio Edifice But — ", Says Father Harney . 2
Says Congress May Scrutinize Philadelphia Radio Situation, „ .... 5
High Officials Will Attend Merger Hearings, , . . . . . 6
Radio Takes Stellar Role In Royal Wedding. . . . . . 7
Czecho Theatres To Be Subsidized By Broadcasting,..., . 8
The DeLanceys Listen As Much As The Clancy s. . 9
Mullen Named RCA Publicity Head, . . . 10
A Westinghouse Discovery. . . 10
Industry Notes . 11
Affiliated WCFL Midwest Chain Ready . .......11
Applications Granted By Broadcast Division FCC
12
"MUCH FINE IN RADIO EDIFICE BUT — " SAYS FATHER HARNEY
Although not able, on account of illness, to testify
at length at the hearings as to whether or not Congress should
allocate additional facilities to religious and educational
stations, Rev. John 3. Harney, Superior General of the Paulis t
Fathers, sent a lengthy brief to the Federal Communications
Commission, much of which was of a highly critical nature.
It was Father Harney who, because of dissatisfaction
at the treatment alleged to have been accorded to Station WLWL
in New York City, owned by the Paulist Fathers, brought about
the investigation the Commission is making in the religious and
educational fields and which may result in action by the next
Congress.
"Let me assure you we do not seek or desire the destruc¬
tion of the present radio structure", the Catholic priest declared
in his appeal to the Communications Commission. "Often we have
used the word 'remodeled'. That, we are convinced, is the right
word to use, and the right thought to have in this connection.
"There is much that is fine in the radio edifice. We
do not want one good thing. in it discarded. Commercial broad¬
casting has done much to entertain, to please, and to improve
the tastes, particularly the musical tastes, of the American
people.
"Unfortunately it has also been guilty of doing quite
a bit in the opposite direction, particularly by extending its
facilities to mountebanks, charlatans and other birds of prey.
It has contributed also to the education of the people, and to
the cause of religion. For all this we pay them due congratula¬
tion and gratitude. We would not have them diminish in any
degree, but would rather wish them to increase their cooperation
with human welfare workers of every type. What we advocate will
not in the least take away their power to promote the public wel¬
fare.
"But along with the good, there is much evil in the
existent radio structure. It is dominated and its most powerful
units, its choicest facilities are held by a huge monopoly. That
monopoly must be stripped of its power, if not of its wealth. Its
very heads are not the type of men to have a decisive voice in any
education of the American people.
"Their interests and their own business standards are
at variance with the interests of the vast bulk of their listeners.
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11/30/34
They will not give, they will not suffer others to give over
their stations a true, sound education in matters of gravest
material and ethical importance.
"Their power to direct, to shape, to choose the type
of education that shall he given by radio, must be broken. They
must no longer have exclusive power to control education by
radio, whose pervasiveness enables it to penetrate the most
secluded spots, and whose lightning-like speed outraces every
other means of education,
"With them in the saddle, Freedom of Speech over the
air is not only imperilled - it is wounded unto death.
"Speak, then, and act. Deal as gently as you can with
the radio structure and with its mighty men. Spare them, if you
can, but at any and all costs, safeguard effectively the rights,
the liberties, the interests, and the true welfare of the
American people. "
Referring to his Station WLWL in New York, as having
been "hamstrung" in being forced to share time with the Columbia
station WPG, at Atlantic City, Father Harney said:
"Were our hours increased, our situation improved?
By not a hair's breadth. WPG was given the lion's share; WLWL,
the pittance left - 15-g- hours a week. What time WPG had previous¬
ly enjoyed, I do not know, but I do know, and it is a fact easily
ascertainable from official records, that for quite a while it
neither needed nor used all the broadcasting time so bountifully
bestowed upon it by the Radio Commission. Much of that time
hung heavy on its hands. Why then was not more of it given to
WLWL ? Why ? Why ?
"But what of public interest, convenience or necessity
in this arrangement? WLWL was a non-profit station broadcasting
high grade programs which included instructive talks on social,
religious, ethical, educational and economic questions. It had
a large actual audience, made up, as its correspondence showed,
in large measure of Jews, Protestants and the non-churched, as
well as of Catholics. So far as the vital desires and needs of
men were concerned, it was giving a more valuable and helpful
program than any other radio station in the country - WPG was
also giving a good program, chiefly entertainment. It broadcast
occasionally, the proceedings of one or another meeting held in
Atlantic City's famous Convention Hall.
"Its existence, and its more than ample broadcasting
time are held necessary on the ground that otherwise the people
of Atlantic City, and its vicinity, particularly the sparsely
populated sections of South Jersey, will not receive good or
satisfactory radio service. Out limited time is explained by
the people whom we reach have an over- abundance of radio service.
In both of these arguments used against us, there isn't a hand¬
ful of truth to a bushel of misrepresentation.
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11/30/34
"The people of Atlantic City and of every square mile
in which its programs can be heard, are very efficiently served
with precisely the type of program put out by WPG-, from New York,
Philadelphia, Baltimore and many other stations,.
"It wouldn't matter the least little bit to the people,
as distinguished from those who eke out a living, or gather
profit from the operation of WPG, if that station were to silence
its transmitter forever. Those people would still be able to
get the educational uplift of the 'Amos ’ n 1 Andy' program, and
the marvellous mental, moral and spiritual refreshment of
Columbia's TVoice of Experience.*
On the other hand, WLW offers the people a type of
service quite different from that of any radio station in this
part of the world - a service that the people need, want, and
enjoy - a service that Jews, Protestants, and the non-churched
tune in to get, as well as Catholics - a service vastly more to
the public interest and welfare than any other - a service that
is not now duplicated anywhere , and never will be duplicated by
any commercially controlled station - a service whose extension
would be of immense benefit, whose curtailment is an injury,
and whose cessation would be a grievous loss to the people, to
Protestant, Jew and Catholic alike.
"Another look at WPG will be instructive and should
provoke thought. It is no longer municipally owned, operated
or controlled. The license to operate is not given to Atlantic
City. The WPG of today is quite other than the WPG of a few
years back.
"It is a corporation formed by the Columbia, Broadcast¬
ing System, entirely owned by Columbia directed and controlled
by Columbia. Atlantic City has neither voice nor vote in the
councils which determine its operations - broadcasting, financial
or any other. Has Atlantic City given it up entirely? Oh no.'
Not quite. It can have back its transmitter, studios, micro¬
phones and other equipment, all in good condition when Columbia
is through with them - and with them it is likely to get back
a statement of indebtedness, nominally to the WPG Broadcasting
Co. , actually to Columbia. All these things are specified in
the lease by which Atlantic City's officials handed the munici¬
pally built and paid for radio station over to the Columbia
Broadcasting System.
"This lea.se, a masterpiece of care for the people of
Atlantic City, was solemnly (though somewhat belatedly) approved
by the Federal Radio Commission. That very day they either
heard or used the shibboleth "public interest, convenience or
necessity. " Perhaps they had heard it so often that familiarity
had bred contempt. At any rate, it will take a high-powered
microscope to find any trace of regard for that sacred principle
in either the lease or the Commission's approval."
X X X X X X X X
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11/30/34
SAYS CONGRESS MAY SCRUTINIZE PHILADELPHIA RADIO SITUATION
A Senator who ashed that his name not be used at this
time but who said that he expected to be active in radio masters
at the forthcoming session, in the absence of Senator Dill, of
Washington, former radio leader who did not seek re-election,
prophesied that Congress would cast its ea.gle eye on the situa¬
tion whereby the Chicago station KYW had been moved to Philadel¬
phia and "the networks had thereby increased their monopoly in
that city."
As it stands now, the major stations (500 watts power
or more) of Philadelphia are KYW, 10,000 watts, which will be
dedicated Monday, December 3, with a special broadcast following
at 10:30 P.M. EST; WFI, 500 watts; WLIT, 500 watts; WIP, 500
watts, and WCAU, 50,000 watts. Of these, KYW, WFI and WLIT are
controlled by the National Broadcasting Company and WCAU by
Columbia.
"There is, however, a closer affiliation between the
networks in Philadelphia. Dr. Leon Levy, an owner of WCAU, the
Columbia station in Philadelphia, is General Manager of the
Philadelphia Broadcasting Company, Program Manager for the new
NBC Station KYW. Dr. Levy is also a brother-in-law of William S.
Paley, who hails from Philadelphia, and who is the President of
the Columbia Broadcasting System. He is a brother of Isaac
Levy, also an owner of WCAU.
"All sorts of monopoly charges have been hurled at the
networks in Congress but here appears to be a case where the
two big chains themselves are linked together in the control of
a city's broadcasting. The Federal Communications Commission,
the members of which have to be confirmed by the Senate on or
after January 1st, may be required to do some explaining on
this.
"Also a thing I believe the Commission will be asked
about will be the practice of moving stations from one section of
the country to another. I understand the moving of KYW to
Philadelphia wa s justified by the fact that the Second Zone in
which Philadelphia is located, was under quota, while Chicago was
considerably over the allotment authorized.
"I am sure certain Senators will want to know more about
the transaction whereb y former Governor Cox, of Ohio, former
Democratic presidential candidate, bought a station at Erie, Pa. ,
and was allowed to transfer it to Dayton, 0. , and to operate it
in conjunction with his newspaper in that city. I believe the
practice of picking up a small inexpensive station in one part of
the country and then, through influence, being allowed to trans¬
fer it elsewhere and increase its power and thus convert it into
a valuable property, may be carefully gone into by the forthcom¬
ing Congress. Also, that in such deals as when 'William Randolph
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Hearst recently bought Station WBAL; at Baltimore, at a reported
figure of $400,000, the Commission will be required to know
about it beforehand rather than be consulLed afterwards as
apparently was the case in the Baltimore deal. ,r
A delegation from Washington headed by Col. Thad H.
Brown, Vice-Chairman of the Federal Communications Commission
will attend the gala KYW opening in Philadelphia Monday night.
Richard C. Patterson, Jr. , Executive Vice-President of the Nation
al Broadcasting Company will be a speaker. Also Andrew W. Robert
son, Chairman, of Westinghouse Company, J. Hampton Moore, former
Congressman and Mayor of Philadelphia, and Governor-elect George
H. Earle, of Pennsylvania, will be heard. Radio stars, includ¬
ing Gladys Swarthout, Lawrence Tibbett and Paul Whiteman, will
join the network welcome which will go out over stations in all
parts of the country (10:30 P.M. EST) .
KYW, then located at Chicago, was the 9th station of
the now about 600 stations in the United States to receive a
broadcasting license. It was issued November 15, 1921. With
the exception of the removal period to Philadelphia, it has been
on the air continuously ever since.
XXXXXXXX
HIGH OFFICIALS WILL ATTEND MERGER HEARINGS
The center of the telegraph communications world -
wireless, wire and cable - will shift to Washington Monday,
December 3rd, when hearings to be held by the Telegraph Division
of the Federal Communications will begin. As a result of these
sessions, recommendations will be made to Congress regarding
the enactment of laws authorizing the consolidation or merger of
communication companies and in the event such a recommendation
is made, to determine what safeguards and conditions should be
contained therein.
Among those who will appear in Washington will be Col.
Sosthenese Behn, President of the International Telephone & Tele¬
graph Company; Frank C. Page, Vice-President and Ellery W. Stone,
Vice-President, Mackay Radio; David Sarnoff, President, Radio
Corporation of America; C. ?. Cooper, Vice-President, American
Telephone & Telegraph Company; Major R. Colton, War Department;
Capt. S. C. Hooper, Navy Department; J. M. Young, Acting Presi¬
dent, United Telegraphers Union; Frank Powers, International
President, Commercial Telegraphers, Francis W. Johnson, Attorney
General of New Hampshire; N. L. Smith, Chairman, Public Service,
New Hampshire, and Leon Cammen.
The tentative order of appearance of the different
groups at the hearings will be as follows:
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11/30/34
Postal Tele graph- Cable Company, Western Union Tele¬
graph Company, Continental Telegraph Company, American Telephone
& Telegraph Co. , American Radio News Corporation, Radio Corpora¬
tion of America, Association of 'western Union Employees, Com¬
mercial Telegraphers’ Union, United Telegraphers of America,
representatives of the State of New Hampshire, Navy Department
and War Department.
X X X X X X X
RADIO TAKES STELLAR. ROLE IN ROYAL WEDDING
Radio almost stole the show at tlie wedding of the Duke
of Kent and the Princess Marina. The broadcast of the ceremonies
beginning at 5:45 o’clock in the morning, Eastern time by the
NBC and Columbia, was one of the most remarkable radio trans¬
missions in the history of the science. It seemed to have
everything, the human interest in the wedding itself, a simply
gorgeous wedding ceremony, beautiful music, climaxed by a
memorable singing of "God Save the King1’, the English regimental
band outside, and the cheering crowds.
"I felt almost as if I had actually attended the
wedding myself", one who had heard the broadcast remarked. "It
gave me a real thrill. ’’
Because of the early hour no doubt most of the listeners
in the United States missed it but the British Government took
no chances on any of their people missing it. A record was made
of the original broadcast and the ceremonies were rebroadcast by
short-wave from Stations GSE and GSC, in London, at 10 o’clock in
the morning (our time), at 1 o'clock in the afternoon, and at
6 o’clock in the evening.
"This was the first time I know of that the British
ever made a record of such an event as this, and it shows that
governments are rapidly recognizing radio as an agency of dis¬
semination", said Oswald F. Schuette, ra.dio counsellor, who
reported that he had picked up the above mentioned short-wave
rebroadcasts in Washington.
"The Germans have long recorded their great events, such
as the funeral ceremonies of Hindenbergh, the firing of the guns
in their last salute and in the rebroadcast reproduced Hinden¬
bergh' s last speech. When Hitler speaks, a record of the broad¬
cast is made and it is rebroadcast over and over again sometimes
all night long.
"Apparently, then, the British realized the importance
of such an effort in the unprecedented feat of giving the mil¬
lions of listeners in the British Empire an opportunity to
actually listen to the Royal Wedding ceremonies. This they did
by means of making a record - or as it is known in the industry -
7
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11/30/34
an electrical transcription. Thus the time difference in all the
countries of the world was met with.
"I think our own network companies will get around to
making records of early morning foreign broadcasts of such out¬
standing importance as the Royal wedding and perhaps repeat
them later over the networks of the United States at an hour more
convenient for the people to listen. "
Outstanding recognition was given the radio listeners
in the address of the Archbishop of Canterbury to the Duke of
Kent and Princess Marina at the service in Westminster Abbey.
He said, in part:
''Never in history, we may dare say, has a marriage been
attended by so vast a company of witnesses, for by a new and
marvellous invention of science, countless multitudes of every
variety of place and home are joining in this service,,
"The whole nation, nay, the whole empire, are wedding
guests, and more than guests - members of the family. For this
great assembly in the Abbey, the crowds waiting outside its walls,
the multitude of listening people, regard the family of our beloved
King and Queen as in a true sense their own.
"It must be moving to you, deer bride and groom, to know
this wealth of good wishes and goodwill is being offered to you as
their wedding gift. "
Great improvement in the quality of the photographs of
the wedding sent by radio to the United States was noticed. They
were reproduced the morning following in newspapers throughout
the United States and unquestionably the best of their kind ever
seen.
X X X X X X X
CZECHO THEATRES TO 3E SUBSIDIZED BY BROADCASTING
For a period of 2 years, broadcasting in Czechoslovakia
has been a great competitor to the local theaters, especially for
those in the smaller towns, and as a result a great number of them
are in a precarious financial position. Various measures have
been proposed for aiding such theatres, but only recently the
Government decided that the Posts and Telegraphs should turn over
from their share of broadcasting receipts a total of 2 million
crowns ($30,000) to certain theatres in small communities,
designated by the Ministry of Education.
Broadcasting in Czechoslovakia is a monopoly operated by
the " Radio zurnal 11 , a company in which the Government holds a major¬
ity interest. The monthly fee for each receiving set in operation
is 10 crowns ($0.40), and the receipts from this source are divid¬
ed between the company and the Czechoslovak Posts and Telegraphs ,
which take care of the technical side of broadcasting.
XXXXXXXX
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11/30/34
THE DE LANCEYS LISTEN AS MUCH AS THE CLANCYS
The latest Columbia Broadcasting System booklet by Dr,
Daniel Starch, entitled "'4 Hours and 28 Minutes by the Kitchen
Clock at the Clancy's - 4 Hours and 16 Minutes by the Telechron
at the DeLancey's", reveals some "total" figures which shed new
light on the listening audience,
"This report not only reveals that the upper income
levels listen as much as the lower levels", John Karol, Columbia's
wntrepremeur of sales promotion, explained, "but it also indicates
that all radio homes listen more frequently and for a longer per¬
iod of time than any previous surveys or estimates have shown.
"You will note that the data presented in this booklet
is based on 88,000 personal interviews conducted over a period
of ten months. This, we feel certain, is the largest number of
personal interviews ever made in a radio study in a comparable
time. "
Conclusions reached in the latest Starch survey are that
1. 77 $ of all radio-owning families in the upper income
levels listen daily - for an average period of 4 hours and 16
minutes. Another 4/ of them listen daily away from home.
2. 78$ of all radio-owning families in the middle income
levels listen daily - for an average period of 4 hours and 27 min¬
utes. Another 3$ of them listen daily away from home.
3. 78$ of all radio-owning families in the lower income
levels listen daily - for an average period of 4 hours and 28
minutes. Another 2$ of them listen daily away from home.
4. During daytime hours (6 A.M. to 6 P.M. ), 50.9$ of all
radio-owning families in the upper income levels listen da.ily,
54.3$ of those in middle income levels, 56,8$ of those in lower
income levels.
5. Radio ownership averages 90.0$ of all homes, in the areas
surveyed, ranging from 71.7$ in the lowest income level, to 99.1$
in the highest income level.
6. Upper income homes have owned radios for 7.6 years,
middle income homes for 5.6 years, lower income homes for 4.4 years.
7. Of all families who own home-radios, automobile radios are
also owned by 33.4$ of the upper class, 17.6$ of the middle class,
7.0$ of the lower class.
8. 34.4$ of all radio homes in upper income levels have two
or more radios (not counting auto radios). This is true of 13.8$
of middle-income-level radio homes, and of 5.2$ of lower- income-
level radio homes.
9
11/30/34
9. 96/ of all home radios are kept in working order. This
figure ranges from 94.4/ in lower income homes (96.4/ in middle
income homes) - to 98,4/ in upper income homes.
10. All in all, it looks as though more people own radios,
in upper as well as lower income levels, and that more people
listen . . . and listen longer . . . than any of the pre-Starch
prophets have, all along suspected.
X X X X X X
MULLEN NAMED RCA PUBLICITY HEAD
Frank E. Mullen, Director of Agriculture of NBC, on
December 3rd joins the RCA in New York as official in charge of
public relations and advertising. He takes over the work of
G-lenn I. Tucker, who resigned last month.
Mr. Mullen joined NBC upon its formation in 1926 and
became its agricultural director with headquarters in Chicago.
He organized the National Farm and Home Hour, which first went on
the air in 1928, and is widely known in agricultural and conserva¬
tion circles. The change was made by transfer from NBC to the
parent company. His successor at NBC has not been named.
On Nov. 19, Mr. Mullen was reelected chairman of the
Radio Conservation Council, which he was instrumental in forming
about a year ago to promote by radio the conservation of the
nation's natural resources. Among those who addressed the luncheon
meeting of the Council were Secretaries Wallace of Agriculture and
Dern of War.
XXXXXXXX
A WESTINGHOUSS DISCOVERY
One of our Westinghouse friends discovered a Central
American bug that eats the wording right off of Radiola labels
and instruction sheets. We have not yet discovered who is financ
ing this latest attack on R.C.A.
- R/9, Los Angeles.
XXXXXXXX
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INDUSTRY NOTES.*
The Communications Commission has issued a revised
list of night and d ay station quota units corrected to October 30,
In his discussion of "Purity of News", Elisha Hanson,
attorney for the American Newspaper Publishers' Association, will
explain the part played by the Press Radio Bureau of the ANPA,
in cooperating with broadcasting stations in the dissemination of
news by radio (WJZ network at 10 P.M. EST, Wednesday, December 12).
Frederick A. Willis, Vice-President of Columbia in
charge of Educational and Religious work has been made Assistant
to William S. Paley, President.
With demands from the radio audience for Father Coughlin
and the New York Philharmonic Orchestra at the same hour, Station
WCAU in Philadelphia submitted a questionnaire which resulted in
112,110 listeners voting in favor of Coughlin, and 7,064 for the
Philharmonic.
New York police officials conferred with police author¬
ities from Westchester County last week to work out an improved
system of communication between Bronx County station and the
police departments of nearby ’Westchester communities. The confer -
ence was adjourned until Dec. 17 to await the report of a sub¬
committee which wall consider the plans discussed.
Among the suggestions advanced was a unified radio and
telephone system for the two counties and the installation of
police substations along the county line.
XXXXXXXX
AFFILIATED WCFL MIDWEST CHAIN READY
A new organization to be known as the Affiliated Radio
Networks, with stations in Illinois, Indiana, and Wisconsin, is
reported all set to go. The key station will be WCFL, of Chicago,
operated by the Chicago Federation of Labor.
The fifteen stations on the chain are:
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11/30/34
WKBB , Dubuque; WCLS, Joliet, Ill.; WTAX, Springfield,
Ill. ; WHBU, Anderson, Ind. ; WTRC, Elkhart, Ind. ; WGBF, Evans¬
ville, Ind. ; WWAE, Hammond, Ind.; WBOW, Terre, Haute, Ind.;
WTAQ, , Eau Claire, Wis.; WCJjO, Janesville, Wis. ; V7KBH, La Crosse,
Wis. ; WOMT, Manitowoc, Wis. ; WIBU, Peynette, Wis. ; WRJN, Racine,
Wis. ; WHBL, Sheboygan, Wis., and WCFL, Chicago,
XXXXXXXX
APPLICATIONS GRANTED BY BROADCAST DIVISION FCC
WKEU , Radio Station WKEU, LaGrange , Ga. , C.?„ to move
transmitter and. studio from LaGrange to Griffin, Ga. , and change
hours of operation from specified to daytime hours, on 1500 kc. ,
100 watts; New, W. Right Esch, Daytona Beach, Fla. , C.P. for new
station to operate on 1420 kc. , 100 watts, unlimited time; WNAC,
Shepard Broadcasting Service, Inc., Boston, Mass., license cover¬
ing C.P. authorizing increase in day power from 1 KW to 2-| KW,
1230 kc. , 1 KW night; WOL, American Broadcasting Co. , Washington,
0. Co, modification of C/p0 to extend completion date to Jan. 15,
1935; WADC, Allen T. Simmons, Tallmadge, Ohio, modification of
C.P. to change equipment and extend completion date to Jan. 10,
1935; WAMC, Raymond C. Hammett, Anniston, Ala., modification of
C.P. approving transmitter site at 10th and Noble Sts. , Anniston,
Ala. , change authorized equipment and extend commencement date to
at once and completion date to 45 days hereafter (Appl. granted
with conditional clause).
Also, KXYZ , Harris County Broadcast Co. , Houston, Tex. ,
license covering special Experimental Authority to operate with
additional power of 250 watts and make changes in equipment;
WSAN . WSAN, Inc. , Allentown, Pa. , special experimental authority
for period of 60 days to increase power from 2 50 to 500 watts,
on 1440 kc., sharing with WCBA; WCBA, B. Bryan Musselman, Allen¬
town, Pa. , special authorization to increase power from 250 to
500 watts, for period of 60 days; WEDC , Emil Denemark, Inc. ,
renewal of license on a temporary basis subject to such action
as may be taken upon pending application for renewal; NEW,
Bamberger Broadcasting Service, Inc. , location to be determined,
Newark, N. J. , C.P. (Gen. Exp.) frequencies 31600, 35600, 38600,
41000 kc. , 1000 watts power, for special facsimile communications.
XXXXXXXX
12
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Heinl Radio Business Letter
2400 CALIFORNIA STREET
WASHINGTON, D. C.
CONFIDENTIAL- Not for Publication
cm;-
INDEX TO ISSUE OF DECEMBER 3, 1934
I. T. & T. Urges U. S. To Unify Telegraph System . 2
Believes Radio Will Increase Newspaper Circulation.
Floyd Gibbons1 Father Dies .
Germany Adds Great National Station. . . 5
Gary-Prall Situation Discussed. „ . 6
Five Thousand Mile Radiotelephone Service To Japan . 7
WJSV Lands Good Commercial. . 7
Brooklyn Stations Fight Promises To Be Lengthy . 8
Equitable For The Big Cities . 9
W. U. Advocates Unifying Of All Companies, If Any . 10
Star-Maker Appointed ABS Vice-President . 11
Applications Granted By Broadcast Division, FCC . II
No. 780
December 4, 1934.
I. T. & T. URGES U. S. TO UNIFY TELEGRAPH SYSTEM
There was so little lost motion as the Telegraph
Division of the Communications Commission inaugurated its hearings
to formulate recommendations to Congress regarding the enactment
of laws authorizing the consolidation, or merger, of communica¬
tions companies, that the witnesses of the International Tele¬
phone and Telegraph Corporation, which owns the Postal Telegraph,
Commercial Cables, Mackay Radio and All American Cables, were
all heard the first day, the proceedings moving at such speed.
Col. Sosthenes Behn, President of the International
Telegraph Company, was the last to appear and as did the others
of his company, approved the unification of all forms of American
telegraph services - radiotelegraph, wire and cable. Colonel
Behn said that he was in favor of a merger but suggested two
separate companies, one to handle the domestic service and the
other to take care of the foreign service. He also told the
Commission that he felt the major telegraph companies should
get together and form a healthy industry to compete with the
telephone and airmail. The first step, he said, should be along
the lines of the Graham Act, enacted in 1921, to permit consolida¬
tion of telephone organizations.
"But the Postal will not enter into any agreement that
will not protect every man, woman and boy that is now employed
by the company", he asserted.
Howard L. Kern, Counsel for Postal Telegraph, said:
"The government does not do its full duty by merely
permitting the private interests to bring about a solution of
these problems, but the government has an affirmative duty pend¬
ing such solution to see that the struggle for private advantage
does not prejudice public interests. "
Wolcott H. Pitkin, Vice-President and General Attorney
of the I. T. & T. declared:
"This Company believes that the best safeguard to be
included in the law would be to vest in the Commission itself
full authority to approve or disapprove any merger or consolida¬
tion which may be proposed in accordance with the effect of such
merger or consolidation on the public interest.
"The different forms of communication in the very
nature of things compete one against the other - the telephone
companies with the telegraph. The airmail, and to a lesser degree,
2
12/3/34
the mail itself, compete with the telephone and, more directly,
with the telegraph. Therefore, the consolidation of the tele¬
graph services, whether domestic or trans-oceanie or both,
would not do away with competition in communication. In fact
by strengthening the telegraph, such unification would intensify
the natural competition among the different forms of communica¬
tion. 11
Col. A. H. Griswold, Executive Vice-President of the
Postal Telegraph said, favoring the unification of the telegraph
services in this country:
"When the management of an essential public service
can base its decisions on the improvement and extensions of its
service and betterment of employment conditions rather than upon
requirements of competition, there is bound to result a condition
more satisfactory to the public, to the employees and to a
government regulatory commission. "
Edwin F. Chinlund, Comptoller and Vice-President of
I. T. & T. stressed the following advantages in unification of
the telegraph business of this country:
"The industry would be subject to effective competition
from the long distance telephone and the airmail, but would be
free from the expenses incidental to duplication and internal
competition.
"Savings of a substantial character would be made
in non-labor items such as rents, maintenance and carrying charges
on duplicate equipment, certain elements of commercial expense,
general headquarters and administrative expense, etc.
"With unification under governmental supervision, a
new scientific rate structure which would be fair to all classes
of telegraph users could result promptly.
"Service would be extended to places now now served
and services would be improved principally because the industry
could devote its attention to such improvement with confidence
in the future. "
Mr. Chinlund concluded:
"After studying all of the available data, it appears
that unification of the telegraph industry is not only necessary
as being in the best interests of the American people in giving
to them the best possible telegraph service at the lowrest pos¬
sible rates, but that it is essential to protect the employees
and the investors in the industry."
XXXXXXXX
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BELIEVES RADIO WILL INCREASE NEWSPAPER CIRCULATION
Arthur Brisbane, Hearst Editor No,. 1. who recently
undertook the task of building up the New York Mirror, a tabloid,
discussing different phases of the work, had this to say about
radio :
"Radio competition is not competition with newspapers,
"As regards news; the radio is more like a signboard.
The average human being wants to get the news at his leisure,
and think about it as he reads. A few words hurled at him through
the air and followed by others immediately do not give him time
for thought. News of any importance is, essentially, a thought-
producing communication.
"The newspaper is useful, the radio is useful, the
latest, and undoubtedly, one of the greatest of human inventions.
Things that are useful do not interfere with each other.
"There are more horses now working than there were
before the automobile was invented. There is a greater tonnage
of sailing vessels on the sea than before Fulton was born.
"The radio will increase newspaper circulation, because
it will tell the people just what it was the radio gentleman
was trying to talk about. It will also tell the advertisement
reading population just what it was the handsome young lady
was singing, or the interesting comedian was joking about,
"Radio’s greatest value will be as a teacher, enabling
the greatest man, whoever he may be, a professor of science on
some distant mountain top, or the President in the White House,
to tell all the people at the same time what all of them want
to know, or ought to know, "
XXXXXXXX
FLOYD GIBBONS' FATHER DIES
E. T. Gibbons, father of Floyd Gibbons, radio broad¬
caster, died in Washington last Saturday at the age of 74. A
pioneer in chain-store operations in the Middle West, he was in
business in Minneapolis and Chicago from 1898 until 1915, when he
retired. He lived for a number of years in Paris, where two of
his sons were newspaper men.
Floyd Gibbons had returned to Washington during his
father's illness, but was called back to New York a few hours
before death occurred, and when there seemed no immediate danger.
Since 1928, the late Mr. Gibbons had lived at the Sacred Heart
Home in Hyattsville, a nearby suburb of the Capital. He is sur¬
vived by three sons and two daughters.
X X X X X X X
- 4 -
12/3/34
GERMANY ADDS GREAT NATIONAL STATION
A new German national broadcasting station is now
being erected at Brueck southwest of Berlin, and it will event¬
ually replace the present station at KoenigswusterhWusen. The
new station, which is being laid out on a plot of 2 square km,
will be the largest one in the country. According to present
plans, as outlined by Rolland Welch, Assistant Trade Commissioner
at Berlin, the new transmitter will not be ready for operation
for about 2 years. The Brueck station is being constructed
because the one at Koenigswusterhausen suffers strangely from
fading, even at such short distances as 300 km. Investigators
found that fading was especially noticeable in the southwest
direction, and particularly during the Spring and Fall seasons
of the year. Efforts to overcome the trouble were unavailing,
and investigators recommended the abandonment of this trans¬
mitter and the erection of a new one elsewhere.
Tests have been made and will continue to be made on
the new location, A temporary antenna tower 100 feet in height
is being erected. This tower is being assembled in one piece
on the ground, and when completed it will be raised in its
entirety. Later, after the necessary tests have decided upon
the exact locations, 7 permanent towers, each 250 meters high,
will be placed in a circle around an eighth central tower. The
7 circular towers will form an actual part of the antenna.
This transmitter will operate on 150 kilowatts, prob
ably with the same long wavelength as the present station at
Koenigswusterhausen. Work on the transmitting equipment has
already begun.
The Munich high-power station has now been equipped
with its new anti-near- fading aerial, which will be put into
service immediately. In view of the increased local range, the
Augsburg relay station will shortly be closed down. According
to a recent announcement, the German Post Office has decided to
open a new relay station in the border count between Silesia
and Saxony, where reception conditions are very poor. This
station will be erected close to Reichenbach in the Oberlausitz,
and will operate on a common wavelength, with an aerial power of
1.5 kw. In the meantime, a well-known German firm is working
on the transmitter equipment. It is anticipated that the Coblenz
relay station, which will work on a common wave with a power of
1.5 kw, will be finished by January next. Work has been started
on the installation of the anti-near-fading aerial at the
Muhlacker high-power station. During the daytime Muhlacker will
close down, and the old Stuttgart-Degerloch transmitter will
broadcast Reichssender Stuttgart's program every day until 3 P.M. ,
G. M.T. It is hoped to complete the new aerial by the middle of
November.
X X X X X X X X
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GARY-PRALL SITUATION DISCUSSED
Speculating upon how Representative Prall, of New York,
may fit into the picture with regard to Ramp son Gary at the
Federal Communications Commission, Sol Taishoff writes in the
Washington Evening Star :
"At least one new face is expected on the F.C.C. next
January. Representative Prall, New York Democrat, who did not
run for reelection in November, is definitely assured of a place
on the F. C. C. - probably as Chairman of the Broadcast Division.
Prall is now confined to his home recovering from a leg fracture
suffered in an automobile accident last August with his friend
and sponsor, Senator Wagner, of New York.
"Prall had been appointed by President Roosevelt to a
place on the former Federal Radio Commission last February, but
he elected to conclude his term in Congress. Meanwhile, Congress
enacted the law which set up the Communications Commission and
abolished the former agency. Prall was precluded from accepting
appointment on the F. C.C. because of the constitutional provision
that no member of Congress may serve on an agency created by a
Congress of which he was a member during that term of the Congress.
"As a consequence, Prall was given assurances that he
would be named to the F. C. C. as soon as he becomes eligible, or
on January 3. While his indisposition may prevent him from
actually assuming that post next month, those close to the Congress¬
man indicate that he expects to receive the appointment at that
time.
"Now sitting in the post slated for Prall is Chairman
Hampson Gary of the Broadcast Division, Texas Democrat and former
Minister to Switzerland. It is presumed that he will leave the
agency in January unless other personnel changes are made. Other
Democratic members are Chairman E. 0. Sykes, of Mississippi,
appointed for the seven-year term; Paul A. Walker, of Oklahoma.,
Chairman of the Telephone Division, named for a five-year term,
and Dr. Irvin Stewart, of Texas, Chairman of the Telegraph Divi¬
sion, named for three years. Unless a vacancy occurs in one of
these three posts, or unless Prall is not nominated, Gary’s
tenure will end January 3.
"One possibility talked about in radio circles is the
appointment of Chairman Sykes, himself former Chief Justice of the
Mississippi Supreme Court, to a Federal judgeship. There are no
vacancies at present for which he has been mentioned. This talk
has centered around appointment to the United States Court of
Appeals for the District of Columbia, a five-man court which sits
in review on appeals from the F. C. C. "
X X X X X X X X
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FIVE THOUSAND MILE RADIOTELEPHONE SERVICE TO JAPAN
Overseas telephone service from the United States
will be opened to Japan on December 7, affording a direct voice
connection between any Beil System Telephone in this country and
all telephones in principal cities on the Island of Hondo, includ¬
ing Tokyo, Kyoto, Yokohama and Kobe. Japan, with its 480 ; 000
telephones, is the sixtieth foreign country to be brought within
voice range of the United States. Its addition leaves few
nations of commercial importance to be included in the world¬
wide telephone network in which the United States holds a
pivotal position.
The cost of a three-minute conversation from San
Francisco to Tokyo will be $30. Charges for more distant points
in the United States will be somewhat greater, depending upon
the additional mileage involved.
A ''voice bridge" more than 5,000 miles long will span
the Pacific to link San Francisco and Tokyo through a short
wave radiotelephone channel employing wave lengths between 14
and 45 meters. The Bell System's transmitting station at
Dixon, California, focuses its full strength upor the receiving
station at Komuro, Japan, by means of a highly directional
antenna developed by the Bell Telephone Laboratories.
XXXXXXXXX
WJSV LANDS GOOD COMMERCIAL
The largest commercial contract ever arranged locally,
continuing Arch MacDonald on WJSV, of Washington, for 52 weeks
starting April 2, 1935, was signed this week
With wire information furnished by the Washington Post ,
Arch will broadcast his usual play-by-play accounts of all of
the Washington Senator's out-of-town games, in cooperation with
People's Drug Stores, sponsors of the series.
The contract was officially signed by representatives
of his sponsors; Jess Willard, manager of WJSV; and Charles
Moore, promotion manager of the Post. The series will be heard
on WJSV at 6:15 P.M. weekdays and at 7:15 P.M. Sundays.
X X X X X X X X
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12/3/34
BROOKLYN STATIONS FIGHT PROMISES TO BE LENGTHY
There was every indication in the reopening of hearings
of the Brooklyn Daily Eagle applying for the frequencies of
Brooklyn stations WARD, U. S. Broadcasting Corporation, WBBC,
Brooklyn Broadcasting Corporation, WVFW, Paramount Corporation
and WLTH, Voice of Brooklyn, that the case would be hard fought
and long drawn out.
Theodore Liquerman, of New York, certified accountant,
retained by the U. S. Broadcasting Company, was the first witness
in the same capacity for WLTH. Brother David Gannon, of the
Franciscan Friars of Atonement, said that by appeals over WARD,
his society had been able to carry on their work in Brooklyn.
"Of course, I am in the monastary, and I am not permitted
to listen to the radio", Brother David explained, "but I have had
work in New York for the last three months and I have heard and
observed the work that is going on. If it were not for the radio
it would not have been as successful as it was. "
When Father Paul James Francis, Father General and
founder of the Society of the Atonement appeared Thomas P.
Littlepage, Sr,, who, along with John M. Littlepage, are counsel
for the Brooklyn Eagle , inquired:
"Father Francis, do you know how much time has been
used on WARD for your work?"
"Only in a general way", the priest replied. "I have
not kept any tab on it myself. "
"I think you said you had never spoken over the station?"
"No, except I am planning to, if the station perseveres."
When George N. Galloway, of the Brooklyn Tuberculosis
Society, spoke of receiving the facilities of WBBC gratis, Mr.
Littlepage inquired,
"As a matter of fact, all radio stations give time for
this very fine work, do they not?"
"We have not been able to secure time over New York sta¬
tions because they feel that they are national in character and
should not be confined to talks or problems for Brooklyn specif¬
ically", Mr, Galloway answered. "We are not using any other
station than WBBC. "
"All the big New York stations give time to this tuber¬
culosis campaign at times, do they not?"
"They do for a national purpose, but not for a specific
territory, "
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Dr. Samuel Zwerling, of the Medical Society of Kings
County, said in response to G-. August Gerber, counsel for the
U. S. Broadcasting Company, that he was proud to say the talks
of the Society over WBBC had been rebroadcast by the American
Medical Association.
Edward Kole, a lawyer, described broadcasts he had
been making over WBBC, and mentioned one on the subject of mal-
injury, with respect to bankruptcy.
"What do you mean by ’mal-inj.ury ' ? " Mr. Gerber inquired.
"Some people, or the laymen, would regard it as faking
injuries in a negligent case. Scientifically it is not faking
at all, but how a layman regards it, and one of the reasons why
the subject was chosen was to explain where * mal-injury* is not
faking at all, but is the result of certain physical injuries
beyond the control of individuals. "
Fred R„ Marvin, secretary of the Committee American
Education, told of broadcasts over WBBC to give the average
listener a better understanding as to the nature of our form
of Government and the duties of citizenship. Dr. Russell Morse
Brougher, of the Baptist Temple of Brooklyn, said he had utilized
the facilities of WBBC.
"We have received thousands of letters from those in
radio land who have been helped and blessed because of our
services", Dr. Brougher stated. "At one time we mailed out over
1500 little Bible markers to folks who wrote in for them. We
received letters from the Bahama Islands, up in Nova Scotia,
Newfoundland, and the winner of a long-distance contest we con¬
ducted was in Manchester, England. "
XXXXXXXXX
EQUITABLE FOR THE BIG CITIES
Will someone please explain why an "equitable" system
of radio allocation puts so many broadcasting stations into
one-quarter of the country? I mean, will someone please explain
it so as to be both clear and credible?
- R/9, Los Angeles.
XXXXXXXX
9
i
12/3/34
W. U. ADVOCATES UNIFYING OF ALL COMPANIES, IF ANY
1
No unification of telegraph, properites and enterprises
would, in the opinion of J. C. Willever, First Vice-President of
the Western Union, accomplish any permanently useful purpose
unless it were all embracing; that is to say, unless the con¬
solidated enterprise could occupy the entire field of record com¬
munication and take over all the telegraph business now being
conducted, by whatever methods, by other companies of whatever
kind.
If Should an amendment in aid of unification be recommend¬
ed to Congress by the Commission, it should, we venture to suggest,
be broad enough to permit the consolidation of all telegraph
business by whomsoever or howsoever conducted, while also safe¬
guarding, by proper requirements, the continued development and
use of the wireless and, in the discretion of the Commission, of
any new form of communication which may be developed hereafter",
Mr. Willever said.
"Further, if we are to consider a consolidated tele¬
graph enterprise, even all-embracing at its inception, it would
seem highly desirable, in order to assure to the enterprise
that permanent strength, reliability and adequacy required under
the policy announced by Congress that there be in the law itself
some reasonable guarantee that the telegraph business shall not
be undermined in the future by small competitors entering the
field with competing services between profitable centers where
the density of traffic would permit a company serving such centers
alone to make a profit under a rate structure which the company
offering the nation-wide service could not afford to meet.
"Unless some assurance of this kind can be found, the
removal of any competitor, or even of all competitors, would be
merely the signal for the birth of others, and the removal of
less than all competitors would merely mean the expansion of the
competition of those who are left; so that whatever advantages
could be looked for from a regulated monopoly under close Govern¬
ment supervision could not be relied on to endure. The situa¬
tion might be met in part at least, by a provision that in case
any merger or consolidation of telegraph properties approved by
the Commission shall embrace all or substantially all of the
record communication business of the country, by whatsoever
means or by whomsoever conducted, no other person or corporation
shall thereafter engage in interstate or foreign business of
like character, except to the extent that such person or corpora¬
tion shall have been so engaged at the time of the approval of
such merger or consolidation by the Commission, without a certifi¬
cate of convenience and necessity from the Commission, which the
Commission shall not be authorized to grant so long as the con¬
solidated telegraph system is able and willing to furnish ade¬
quate service between the points involved, and to encourage and
develop, to the satisfaction of the Commission, the types and
kinds of service best adapted to the business and Governmental
needs of the country, whether by means now known or others which
may be developed in the future. "
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12/3/34
"The Bell System Companies are not engaged in the pub¬
lic telegraph message business with the exception of a very
minor amount in one company1', C. P. Cooper, /ice-President of
the American Telephone & Telegraph Co., testified. "We have
been, however, in the private line or leased wire field since
1887 and to a considerable extent are responsible for the growth
of this type of business. Recently a new development in this
field, known as the teletypewriter exchange service, was offered
to the public. Also, it is a well known fact that much of the
research in our laboratories, directed primarily to the develop¬
ment of the telephone art, finds application in the telegraph
business. * * * *
"From our observation and knowledge of the services
offered by the telegraph companies, we believe that the possible
advantages of a consolidation of the telegraph companies are
sufficient to justify the Commission in recommending legislation
permitting such consolidation.
"The Order also requests that those interested advise
the Commission as to what safeguards and conditions they think
should be prescribed, if a recommendation authorizing consolida¬
tion be made. So far as rates and practices are concerned, the
public is already protected by the provisions of the Communica¬
tions Act. It would be advisable to provide that a certificate
must be obtained from the Commission to the effect that any
proposed merger or consolidation is in the public interest
before it could become effective. This would give the Commission
opportunity to consider the effect of such proposal on all of tb -
interested parties - the public - the customers - the investors -
and the employees."
XXXXXXXX
STAR-MAKER APPOINTED ABS VICE-PRESIDENT
G-eorge B. Storer, President of the American Broadcasting
System, has appointed Burt McMurtrie, credited with discovering
many famous radio stars, a Vice-President of the new major net¬
work, in charge of program operations.
"Mr. McMurtrie, who is 32, thus becomes one of the
youngest Vice-Presidents in network broadcasting", an ABS state¬
ment sets forth.
"Bing Crosby, Morton Downey, Dick Powell, Mildred
Bailey, Ted Fio Rito and others are among the radio luminaries
who started their careers under the guidance of McMurtrie.
"McMurtrie joined American Broadcasting on August 15,
resigning his position as Commercial Program Director of Columbia
Broadcasting System, a post he had held four years. The last six
11 -
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12/3/34
months of that period he had spent in California, developing the
Pacific Coast program bureau for Columbia. From that point he
was responsible for the Big Crosby Woodbury broadcast, Raymond
Paige’s Pontiac program, Dick Powell’s and Ted Fio Rito’s broad¬
casts and the Louella Parsons Movie Stars series,,
He left radio to devote two years to the study of
music and langauges in Rome and served as foreign correspondent
from that point. He returned from Italy in 1930 and broadcast
the first of the B. A. Rolfe Lucky Strike programs for the
National Broadcasting Company.
"McMurtrie then left NBC to go with Lennon and Mitchell
Advertising Agency as director of radio and attracted the atten¬
tion of the industry with his handling of the Paul Whiteman Old
Gold program and in particular Whiteman’s spectacular Old Gold
tour of the country, to date unequalled in radio exploitation. ”
XXXXXXXXX
APPLICATIONS GRANTED BY BROADCAST DIVISION, FCC
WQDX, Stephens Luke, Thomasville, Ga. , consent to
voluntary assignment of license to H. Wimpy (licensed on 1210 kc. ,
100 watts, unlimited); WQDX, H. Wimpy, Thomasville, Ga. , C.P. to
move transmitter locally in Thomasville, make changes in equip¬
ment and change hours of operation from unlimited to daytime; K5D,
The Pulitzer Publishing Co., St. Louis, Mo., modification of C.P.
to make changes in equipment, increase power from 500 w. night,
2-g- KW day to 1 KW night, 5 KW day, and extend commencement date
to 2 days after this date and completion date to 60 days after
this date; WDRC , WDRC, Inc., Hartford, Conn., license to cover
C.P. authorizing increase in day power from 1 KW to 2-g- KW and
changes in equipment operates on 1330 kc. , unlimited time, 1 KW
night; WMEX, The Northern Corp. ,. Chelsea, Mass. , license to cover
C.P. 1500 kc. , 100 watts night 250 w. day, unlimited time.
WTAR , WTAR Radio Corp. , Norfolk, Va. , modification of
license to use present transmitter as an auxiliary, composite -
DCC Max, 1 KW; KADA, C. C„ Morris, Ada, Okla. , license covering
C.P. for new station, 1200 kc., 100 watts, daytime; KFVS, Hirsch
Battery & Radio Co., Cape Girardeau, Mo., license covering C.P.
authorizing increase in day power from 100 w. to 250 w. and changes
in equipment; WTAR, WTAR Radio Corp. , Norfolk, Va. , license cover¬
ing new equipment 780 kc. , 500 w. , unlimited time; WDAY, WDAY,
Inc., Fargo, N. Dak., license covering C.P. authorizing changes
in equipment and increase in day power to 2^ KW, 940 kc. , 1 KW
night, unlimited time; WEBQ, Harrisburg Broadcasting Co, , Harris¬
burg, Ill., license covering C.P. authorizing changes in equipment
and increase in day power to 200 watts, 1210 kc. , 100 watts night,
specified hours; WHBF , Rock Island Broadcasting Co., Rock Island,
Ill., license covering C.P. authorizing new equipment and moving
studio locally, 1210 kc. , 100 w. , unlimited time.
X X X X X X X
- 12 -
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL — Not for Publication
INDEX TO ISSUE OF DECEMBER 7, 1934
"We Will Not Upset The Applecart", Says Colonel Brown . 2
Sarnoff Declares Radio's Future Ahead, Not Behind . 4
Army-Navy Advocate System Free From Foreign Influence . 6
S. 0. Free Show Idea Charged To Radio . . . 8
Capital Station Seeks Power Boost . 8
Philadelphia NBC- Columbia Connection Denied . 9
Labor Protest Will Probably Mot Block Merger . 9
New N.A.B. Committees To Be Announced At N. Y . 10
Sees Code Forced Upon Big Industries . 10
Radio Capital Plan Reported In Street . 11
Applications Granted By Communications Commission . 11
Radio Audible Arts Institute To Aid Program Appreciation. ... 12
Columbia Votes Two Dividends . 12
No. 781
"WE WILL NOT UPSET THE APPLECART", SAYS COLONEL BROWN
That the Communications Commission will act with dis¬
cretion and for the benefit of the radio listeners, was the
message of Col. Thad Brown, Vice-Chairman of the Commission, in
an interview over National Broadcasting Co. network with Martin
Codel.
"We make a change here, shift a station there, perhaps
authorize a new station to serve a community that needs additional
radio service • — • and immediately there is talk about a general
reallocation and how the listener may have to dial his set dif¬
ferently to tune in his favorite stations. Actually, ours is a
job simply of keeping the radio structure on a sound technical
basis, keeping abreast of the swift changes and improvements in
radio engineering and preserving broadcasting as an instrument
for good public service", Colonel Brown went on.
"When you consider that there are something like 20,000,000
home, automobile and other receiving sets in almost daily use in
the United States, and when you consider that the American people
have invested between four and five billion dollars in broadcast
receiving equipment alone, not to ignore perhaps $100,000,000
more in transmitting equipment, you may rest assured that we
aren’t going to upset the applecart with any sweeping gesture. I
might add, for the sake of completing my statistics, that the
radio manufacturing industry also represents an investment of about
$250,000,000 • — and that, between them, the radio set producers
and the broadcasters employ several hundred thousands of people. "
"Then I gather that the basic structure of American radio
isn't going to be changed so materially as to disturb those radio
listeners who want to continue hearing Rudy Vallee, Paul Whiteman,
Leopold Stokowski, Walter Damrosch and the rest?" Mr. Codel asked.
"Rest assured of that", was the reply. "Even if there
were a wave of sentiment for government ownership and operation
of the radio, which I don't believe exists, we would still want
everyone to hear the kind of programs he likes to hear. And while
we're on that subject, I'd like to say this: There's been a lot
of talk, too, about governmental control of radio programs - about
censorship and all that. I'm a Republican serving under a
Democratic administration, and I can vouch for the fact that this
administration hasn't done one thing, directly or indirectly, to
warrant any believe that it intends now or later to censor or
limit radio as an avenue of free speech and free expression of
talent. I'd like to say all the charges and innuendos are sheer
bunk. "
2
12/7/34
"What about advertising?" the interviewer asked.
"There again we have no powers of censorship", was the
response. "My own opinion is that radio advertising is slowly
but steadily becoming less offensive - cleaning itself up, as it
were. Then, of course, there's the Federal Trade Commission to
regulate improper advertising, and they are doing a very satis¬
factory job in outlawing offensive products and claims, if not
actually stimulating the broadcasters to see that better advertis¬
ing copy is written. "
"Do you believe in the advertising support of radio?"
the Commissioner was asked.
"There's only one other alternative - radio set taxes
such as the British and most European countries impose. But over
there, of course, the governments run the radio, which manifestly
means the parties in powrer control it. I think our American
system is superior in that it is kept free from political control,
just like our newspapers. There should always be freedom of radio
just as there is freedom of the press."
"What are some of the problems facing your Commission
at this time?" Mr. Codel inquired.
"There are a number of important problems facing the
Commission, not the least of which is the Davis amendment, enacted
by Congress in 1928 to guarantee equality of broadcast service in
every part of the United States", Colonel Brown replied. Its
original purpose, to prevent the concentration of all the broad¬
cast stations in the thickly populated and congested areas of
the United States, has been accomplished. Now there are manifest
needs for more facilities in the sparsely settled sections of the
West which cannot be supplied because of the present law. The
Amendment has completely exhausted its usefulness. "
Speaking of the clear channel survey no?/ being made,
Colonel Brown said:
"Primarily it is designed to determine whether the
rural listeners are getting adequate service from our clear chan¬
nel stations - that is, the big high power stations that operate
on exclusive wave lengths at night. In other words, is it neces¬
sary to maintain clear rights-of-way on certain highways of the
ether, so that what we might call express train service shall
supplement local services? As you know, the ne lav/ empowers us
to authorize nev/ low power local stations in communities that
need them, providing the wave lengths can accommodate them, and
we're doing that. But it is just as important - probably more
important - that the farmer and the remote listener should get a
decent choice of radio programs. So far high power and clear
channels seem to be the best way. But the Commission is extremely
anxious to know if, in the light of scientific advancements which
hp,ve recently been made, this is still the best possible method
of assuring the widest and best service to all. That's the reason
for our present survey."
X X X X X X X
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12/7/34
SARNOFF DECLARES RADIO’S FUTURE AHEAD, NOT BEHIND
We stand on the threshold of developments which promise
revolutionary results in bringing new methods of instant high¬
speed wireless communication to the service of industry and com¬
merce in the United States, David Sarnoff, President, of the Radio
Corporation of America, declared to the Federal Communications
Commission in advocating a definite American communications
policy to enable the telegraph services of the country adequately
to develop and to render a fuller public service.
"We are communicating with airplanes. There is no
reason why we should not be communicating with moving trains",
Mr. Sarnoff went on.
"The Commission has granted us experimental licenses
for high-speed facsimile transmission on ultra high frequencies,
and our laboratories are making amazing progress in that field.
This development and the progress being made in multiplex radio
transmission, will revolutionize our present habits of communica¬
tion.
"Let me make it clear that neither the R.C.A. nor any
of its subsidiaries has any plan or program for consolidation or
merger with any other communication company, in the event legis¬
lation be enacted permitting this to be done. There is no agree¬
ment or understanding by the Radio Corporation or any of its
subsidiaries with any other communication company for a consolida¬
tion or merger in the communications field. "
In considering a Communications policy, the Commission
will speedily find that the United States does not have an ade¬
quate telegraph service in the domestic field, and that in the
international field, Americans are working at cross purposes with
each other, resulting in benefit to foreigners and damage at
home, Mr. Sarnoff observed.
"In the domestic telegraph field, there is needless
duplication of investment, overhead and operating expenses. There
has been great waste without compensating advantage to the public.
The teletypewriter exchange service, recently introduced, has
added further complications. The development of domestic radio
telegraph services would have been greatly accelerated had there
been a definite communications policy.
"The absence of such a policy is even a greater menace
to American communications, in the international field. Foreign
communications systems, each unified in its own country, can and
increasingly will benefit from the keen competition of American
companies to do business with them. In Germany, Norway, Sweden,
Denmark, Finland, Czechoslovakia, Hungary, Jugo-Slavia, Roumania,
Holland, Belgium, Russia, Poland, Japan and China, domestic and
international telegraph services are operated under the control
4
12/7/34
of the sane administration. In G-reat Britain international cable
and. radio telegraph facilities were recently consolidated. The
foreigner has the advantage in every negotiation. A definite
national policy is essential if the independence and security of
America in world communications are to be preserved.
"There can be no effective remedy so long as American
laws forbid unification of telegraph services in this country
thereby preventing them from meeting on even terms and dealing
effectively with unified systems in foreign countries with which
American communication companies must necessarily meet and deal.
We should not permit foreign communication agencies to apply a
policy of "divide and rule" in their relations with Americans -
neither in traffic arrangements nor in other dealings.
"In my opinion it would not be practical for the Commis¬
sion or for Congress now to establish a fixed plan as to the
precise form of telegraph unification which might be permitted.
The art of communication is changing rapidly and progress being
made in the research laboratories promises revolutionary develop¬
ments in this field.
"As the law now stands, unification of American tele¬
graph companies would appear to be unlawful, however much public
interest, convenience or necessity would be served thereby. I
believe it is desirable to change the law so that a proposed
telegraph unification may be approved and put into effect if,
after searching examination, the Government should find, through
its regulatory body, that public interest would thereby be
benefited. "
Mr. Sarnoff in his testimony attacked officials of the
telegraph companies for what he viewed as failure to keep abreast
of modernization and research efforts, and predicted that a
unified telegraph organization would "put fear" into telephone
officials.
"The impression I have gained from the testimony here",
he said, "is that we have a dying horse, and that we are on our
last legs, and that the future is doubtful. I believe the future
of the communications business is brighter than ever before. The
future of radio is ahead, not behind. They have criticized the
teletypewriter exchange. Why, the teletypewriter will be deader
than a dodo in five or ten years.
"The ideal way of sending messages is to hold up a
printed sheet that will be immediately reproduced at the other end
facsimile transmission and television are about ready."
X X X X X X X X X
- 6 -
12/7/34
ARMY- NAVY ADVOCATE SYSTEM FREE FROM FOREIGN INFLUENCE
It is the opinion of the Joint Board of the Army and
Navy that the Communications system of the nation is of vital
importance to the national defense and its freedom from foreign
influence is essential. This was among the conclusions present¬
ed to the Telegraph Division of the Federal Communications
Commission by Col. Walter G-. Krueger. They follow:
"(a) All commercial communication facilities in the United
States and its possessions should be owned and operated
exclusively by citizens of the United States and its
possessions.
" (b) The directors of all communications companies, includ¬
ing holding companies and excluding foreign subsid¬
iaries or subsidiary holding companies operating
wholly in the foreign field, should be citizens of the
United States or its possessions.
" (c) No more than one- fifth of the capital stock of any
United States communication company, including holding
companies, should be owned by aliens or their
representatives, f oreign-owned stock should not be
entitled to voting privileges.
"(d) With respect to (a), (b) and (c) above, insofar as
cables, all termini of which are not in the United
States territory, are concerned, the laws and treaties
governing their ownership and operation should stand
in general as at present.
" (e) The merger of foreign controlled communication ser¬
vices or facilities with American communication
services or facilities, including holding companies,
if such merger violates principles (a), (b) , and (c),
should be prohibited.
" (f) The development and expansion of any phase of the
communications art, either in the domestic or inter¬
national field, should be allowed to proceed naturally
insofar as the inherent limitations of the art permit.
This natural development should be subject to the
restrictions imposed by the needs of national defense,
including the needs outlined in the succeeding para¬
graphs and those imposed by the Federal Radio Commis¬
sion or such Communicati on Control Agency as may be
set up in its place, whose auctions are necessarily
based on existing conditions in the radio field and
the state of development of the radio art at the
time.
6
12/7/34
"(g) Provision should be made for the permanent assign¬
ment of these radio frequencies and other communica¬
tion facilities required for national defense and
other authorized agencies.
" (h) Communications in certain strategic areas must be
operated by the Army and Navy. It is essential that
each service have its own self-contained, self-
operated communications with its units, wherever
located, subject to the joint command principles of
the Army and Navy.
"(i) The Government should operate certain public communi¬
cation facilities such as radio aids to navigation
for ships and aircraft and the transmission of
weather, time and hydrographic reports.
"(j) The commercial system should be capable of being
quickly and effectively placed under such government
control as will meet the needs of national defense
upon the outbreak of hostilities.
"(k) It is desirable that operating personnel of the
commercial communications companies be trained in
Army and Navy communication procedure in peace time.
11 (l) It is desirable that operating personnel of the com¬
mercial communication companies be commissioned or
enlisted in the Army and Navy Reserve.
"(n) In case of a proposed merger, the Army and Navy should
reserve judgment on such merger until they have had
an opportunity to study the effect of such merger on
national defense.
11 (n) To safeguard the interests of national defense in all
communication matters and to assure that the above
principles are carried out, the Secretaries of War
and of the Navy should have representatives present,
in full discussions of proposals before any Federal
body set up for the purpose of regulating communica¬
tions, to present those features which may affect the
national defense.
" (o) The Army and Navy personnel, who are technical experts
in communications, should be available in the civil
agencies of the government when and as required. "
X X X X X X X X
- 7
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12/7/34
S. 0. FREE SHOW IDEA CHARGED TO RADIO
Radio is blamed for putting the idea into the heads
of the Standard Oil Company of New Jersey of sending Guy Lombardo's
band of radio fame, on tour with a free advertising show. All
one needs to gain entrance to the travelling show is an automobile
driver's license. The engagement opened in a theatre seating
2000 persons in New Haven and the place was filled to overflowing
and crowds turned awa. y. The performance was put on much the same
as one of Lombardo orchestra's broadcasts. There was a reference
to a new gas the Standard Oil is putting out but the advertising
mentions were brief.
There has been a protest from the moving picture
industry claiming the free shows will hurt the picture business.
Also rumors that there will be counter-attacks on the part of
picture houses, such as urging patrons to discontinue using
Standard Oil gasoline. However, those who have planned the free
show tour have refused to back down and the tour, said to be
costing the oil people upwards of $10,000 a week, is booked for
a month.
The motion picture officials claim that 50,000 persons
attend radio broadcasts in New York free every week.
X X X X X X X X
CAPITAL STATION SEEKS POWER BOOST
Station WRC in Washington, which, along with WMAL in
the same city is owned by the National Broadcasting Company, is
seeking a power increase to 1000 watts at night and 5,000 watts
in the daytime. It is always a matter of surprise to outsiders
that the stations in the National Capital are obliged to operate
on such low power.
WRC broadcasts with 500 watts, WMAL, 250 watts, and WOL ,
100 watts. WJSV, Columbia outlet, virtually a Washington station,
is a 10,000 watter but its transmitter is locp„ted several miles
across the Potomac from the Capital and it is charged to the
Virginia quota.
WRC also asks a construction permit to install new
equipment and to move its transmitter, site to be determined
later.
X X X X X X
8 -
• y
12/7/34
PHILADELPHIA NBC- COLUMBIA CONNECTION DENIED
Apropos the declaration of a Senator recently that he
proposed to "look into the Philadelphia situation" whereby Dr„
Leon Levy, with Columbia affiliations is Program Manager for the
new National Broadcasting Company, Station KYW, a broadcasting
official declared that it was not a tie-up between the two major
networks. Dr, Levy, along with his brother, Isaac Levy, owns
WCAU, Columbia station in Philadelphia, and is a brother-in-law
of William S. Paley, President of the Columbia Broadcasting
System. KYW, a Westinghouse property, was recently moved to
the Quaker City from Chicago.
"The NBC has complete control of Station KYW and the
Levy brothers will simply sell local time commercially under
NBC's direction", the broadcaster declared.
"There is no connection between Columbia and NBC and
this is simply a case of efficiency and less costly operation
under the absolute direction of NBC with an over-all control by
Westinghouse Company. "
XXXXXXXX
LABOR PROTEST WILL PROBABLY NOT BLOCK MERCER
It has been learned that the protest made by labor
representatives against wire and wireless telegre.ph consolida¬
tion at the Federal Communications Commission hearings are receiv¬
ing serious consideration. There was also evidence of this when
Commissioner Payne made quite a point of saying at the hearing:
"Whatever is done, you can be certain that labor will be protect¬
ed to the best of our ability. "
However, the general belief is that this will not
prevent the Commission from recommending to Congress that tele¬
graph consolidation under certain conditions be approved.
F. C. Burton, President of the Association of 'Western
Union Employees, said that 8,500 would be added to the relief
rolls. He testified that the Western Union facilities were suf¬
ficient to care for all the possible wire traffic with the
addition of about 1,000 workers now employed by the Postal
Telegraph & Cable Corporation.
He asserted that while the consolidation of telegraph
properties would undoubtedly mean substantial savings in operat¬
ing costs, the savings would "obviously" be made at the expense
of labor in the industry.
9
12/7/34
The chief cause, Frank B. Powers, International Presi¬
dent of the Commercial Telegraphers' Union of North America, said,
was an "overdose" of machinery and automatic telegraphy, which
began in 1918 and has subsequently cost the jobs of thousands of
capable operators. He said that the proposed consolidation would
cause 15,000 workers to lose their jobs.
Continued competition, said George H. Young, President
of the United Telegraphers of America, was the only hope for
workers, and he added that if the proposed merger would be manag¬
ed under one head, the only salvation of those who would be thrown
out of work would be a "great long breadline. "
XXXXXXXX
NEW N.A.B. COMMITTEES TO BE ANNOUNCED AT N. Y.
President Ward, at a meeting of the Board of Directors
of the National Association of Broadcasters in New York next
Tuesday and Wednesday (Dec. 11 and 12), will announce the appoint¬
ment of 1935 committees of the Association.
Copyright and vital matters will be considered with
a view to action during the coming year,
XXXXXXXX
SEES CODE FORCED UPON BIG INDUSTRIES
Legislative means of placing the big telephone, tele¬
graph, shipping and meat-packing industries under codes were con¬
sidered this week by the NRA Administrative Board, according to
Douglas Warrenfels, who wrote in the Washington Post:
"With their more than 750,000 employees and billions
of dollars in operating capital, the four recalcitrant groups
have resisted all codification efforts. Officials regard their
enlistment under pacts as essential to success of the Blue Eagle
movement.
"None of the important hold-outs would be mentioned by
name, but the purpose of the maneuver, if adopted, would be to
make it so hot for outside industries by congressional edict that
the telephone, telegraph, shipping and meat-packing groups would
welcome instead of scorn, codes.
"All of these industries signed the President’s reem¬
ployment agreement and still are subject to voluntary wage and
hour supervision. The telephone and telegraph corporations have
argued they already are regulated by the Federal Communications
Commission, while the shippers and meat packers have contended
there is no necessity for their inclusion in pacts.
10
12/7/34
" Gen. Hugh S. Johnson last Spring threatened to
impose a code on the telephone and telegraph industries. He
wrote his own compact and called a public hearing for its con¬
sideration after the interests involved refused to propose a
code. Nothing ever came of it, however, despite Johnson's
charges that the industries were guilty of 'abuses inimical to
the public interest.1"
XXXXXXXX
RADIO CAPITAL PLAN REPORTED IN STREET
Radio Corporation of America, it was reported reliably
in Wall Street, the Associated Press says, is considering plans
for a capital reorganization.
The plans are in the hands of a special committee of
Directors, which is giving special attention to the question of
eliminating accumulated dividends on the two classes of preferred
stock.
A move toward rearrangement of the radio capital set-up
has been expected in Wall Street for some time, although officials
continued to withhold comment on the reported plans.
XXXXXXXX
APPLICATIONS GRANTED BY COMMUNICATIONS COMMISSION
Telephone Division; WNC , American Telephone & Telegraph
Co., TLong Lines Dept. ) , Hialeah, Fla., modification of license
authorizing two additional points of communication, namely
Kingston, Jamaica and Santo Domingo, Dominican Republic; WlXY ,
New England Tel. & Tel. Co. , Marshfield, Mass. , renewal of
special experimental station license in experimental service in
exact conformity with existing license; WKFQ,, Ed. V. Turner,
"Monte Carlo," Long Beach, Cal., third class public ship radio
station license; WKEM . Rohl Connolly Co. , "R. C. Co. No. 4, "San
Pedro, Cal., WKFK , Same Co. "Rocona", WKFN , Same Co. "Sonoma",
San Pedro, Cal. , third class private ship radio station license.
Telegraph Division - WAG, Mackay Radio & Telg. Co. , Inc. ,
Thomaston Me. , modification of license to change hours of opera¬
tion from unlimited to 5 A.M. to 9 P.M. EST; W2XBU, Same Co.,
New York City, W2XBV , Same Co. , Southampton, N. Y. , experimental
Genl Exp. license to cover C.P., 86000-100000 kc. , 250 watts
power; WDU , Same Co. , Brentwood, N. Y. , modification of C.P.
extending completion date to Jan. 15, 1935; W4XAC, Police Dept.,
Salisbury, N. C, , experimental-Gen. Exp. license to cover C.P.,
30100, 33100, 37100, 40100 kc. , 20 watts.
X X X X X X
- 11 -
12/7/34
RADIO AUDIBLE ARTS INSTITUTE TO AID PROGRAM APPRECIATION
The Radio Institute of the Audible Arts, founded by
the Philco Radio & Television Corporation, with Pitts Sanborn,
nationally known music critic, as its Director, has been organ¬
ized to stimulate a wider and more active appreciation of good
radio programs among the American people. Offices are at 254
Fifth Avenue, New York City.
"It will endeavor to increase the discrimination of the
public and encourage the cultural growth of the vast audience
by stressing the advantages and enjoyment to be derived from the
best programs and to encourage the public demand for better
things over the radio", its prospectus sets forth.
"If the Radio Institute of the Audible Arts ca,n quicken
public interest in worth while radio programs, the enormous,
potential influence of the ra.dio for good, may be realized.
"Important groups and organizations can cooperate to
create an inspiring future for radio broadcasting.
"The Radio Institute of the Audible Arts is dedicated
to the furtherance of merit in radio broadcasts in all fields,
without favor or discrimination. It stands for the best, and
aspires to excellence, "
In explaining the purposes of the organization, Mr.
Sanborn said:
"The Institute believes that by furthering appreciation
of the better things now on the air, the general level of apprec¬
iation is raised, which must result in increasing demand for the
better things.
"Our activities will extend into the four main fields
of education, music, news dissemination and entertainment. "
X X X X X X X
COLUMBIA VOTES TWO DIVIDENDS
Columbia Broadcasting System, Inc. , declared on Wednesday
a quarterly cash dividend of 50 cents a share plus a special cash
dividend of $1 a share on each of 309,220 shares of Class A stock
and 253/000 shares of Class B stock.
X X X X X X X
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cr~€)
CONFIDENTIAL- Not for Publication
INDEX TO ISSUE OF DECEMBER 11, 1934.
Friends Would Save Hampson G-ary . . . 2
Why Should Broadcasters Be Target?" L. Caldwell Asks . 3
Mullen RCA Information Head Appointment Confirmed . 6
Communications Notables Gridiron Guests . 6
Pacific Radiophone Carries U. S. -Japan Felicitations . 7
Dual Carrier Officer Restriction Defined . , . 9
Tom Shipp Is Laid Up . 9
Brooklyn Eagle's Radio Plea Heard . 10
Declares Telegraph Competition Makes Us Ridiculous Abroad. ... 11
Canada Charges Radio Interference To U. S . *12
No. 782
*
December 11, 1934
FRIENDS WOULD SAVE HAMPSON GARY
Friends are rallying to the aid of Hampson Gary, Federal
Communications Commissioner, who, though his terra does not expire
until next July, is expected to be succeeded January 1st, or
thereabouts, by Representative Anning S. Frail, Democrat, of New
York, a personal friend of Senator Bob Wagner, of New York, and
also of President Roosevelt. The terra of Mr. Frail, who was
defeated for renomination, expires at the beginning of the year.
The President appointed Representative Frail a member of the old
Radio Commission, but with the creation of the Communications
Commission near at hand, he was never sworn in, the general impres¬
sion being that Mr. Roosevelt would appoint Prall to the Commission
January 1st. He could not do it sooner because Mr. Frail was a
member of the Congress which created the Communications Commis¬
sion and under the Constitution, could not serve on it until
that particular session had expired.
The belief is that President Roosevelt, although appoint¬
ing Hampson Gary for a year, in effect really asked him to sit in
until Mr. Frail could take over the reins. In the meantime, the
Broadcasting Division, of which Commissioner Gary is Chairman, has
held important hearings on the question as to whether religious
and educational stations shall be given additional radio facil¬
ities and if so, if this allocation should be made by "Congress.
The record of the hearings comprise more than 14,000
pages of testimony, and in the opinion of Henry A. Bellows, who
was in charge of the Broadcasters* presentation, ’’constitutes
the most significant statement ever made of the aims, purposes
and methods of American broadcasting. "
Obviously Mr. Gary, having conducted the hearings and
being familiar with all its details, is the man to draft the
report. In the short time remaining of his term, if he is to go
out January 1st, it will probably be physically impossible for
him to do this. So important is the report considered that there
are those who believe the Senate will not confirm the members of
the Communications Commission until they see how the Commission
acts on the highly controversial religious-educational matter,
and perhaps will judge them accordingly.
Friends of Mr. Gary argue that unquestionably he has
made good as a Commissioner, is ably qualified for the position,
has undertaken the task with enthusiasm, has labored without
regard to hours, enjoys the work, and therefore should be allowed
to continue. It is their contention that having become familiar
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with the problems of the broadcasters and in particular being
responsible for the all important religious-educational report
that it would be a mistake to put a new man in his place, who
would have to lose all the time of getting up to where Mr. Gary
now is. They contend that this would be a bad thing for the
radio industry.
Mr. Gary’s supporters, accordingly, believe it would
be better, rather than to disturb the present broadcasting set¬
up, for the President to take care of Mr. Prall elsewhere. As
the stories go, Representative Prall, however, is keen on having
this particular job.
One solution in favor of Mr. Gary would be the appoint¬
ment of Judge E. 0. Sykes to the U. S. District Court of Appeals,
which sits in review on e.ppeals from the F. C. C. Gary could then
succeed Judge Sykes. There a.re, however, no vacancies in the
Court of Appeals at the present time.
Several months ago Representative Prall, who is 64
years old, was in an automobile smashup while driving with
Senator Wagner, upstate in New York. Both were injured, Mr.
Prall sustaining a fractured leg. He has been in the hospital
most of the time since but Miss Hildebrand, his secretary,
reports that the New York Representative is now able to get
around and if there is no setback that he will arrive in Washing¬
ton shortly before Christmas.
As is the case with Mr. Prall, Mr. Gary, who was
formerly Consul General to Egypt, is likewise a Democrat and a
personal friend of both President Roosevelt and Senator Wagner.
XXXXXXXX
"WHY SHOULD BROADCASTERS BE TARGET?" L. CALDWELL ASKS
There is no better way of bringing on a Hitler regime
over the radio in this country than by having the Government
attempt to interfere with private censorship, Louis G. Caldwell,
who was the first General Counsel of the old Federal Radio Com¬
mission, said, addressing the annual conference of the American
Civil Liberties Union in Washington. He said the Union’s first
target should not be the unfortunate broadcaster over whom the
Communications Commission exercises a lif e-and-death power every
six months.
Let me express frankly a measure of disappointment at
the position taken by the Civil Liberties Union during the past
year or two on freedom of speech by radio", Mr. Caldwell admonish¬
ed. "I have agreed with its position so regularly in the past on
all questions involving liberty of expression - and particularly
with regard to post office censorship - that the disappointment
is all the greater when I find its representatives advocating
3
12/11/34
what seems to me an inconsistent and an indefensible point of
view on radio censorship.
" The evil to be avoided - if we have any regard for
the lessons of history - is governmental restraint on liberty
of expression, whether imposed by hereditary monarchs or demo¬
cratic majorities. Yet this organization, at least in its
recent appearances in Washington, is directing some of its
shafts at a phantom which it calls private censorship, apparently
not realizing that if there is such an evil it is due above all
to what ought to be considered an unconstitutional censorship by
a governmental agency. 11
Here it was that Mr. Caldwell said that in his opinion
there is no better way of bringing on a Hitler regime over radio
in this country than by having the Government attempt to inter¬
fere with private censorship - "which, in most cases", Mr.
Caldwell added, "is simply perfectly legitimate editorial
selection - and by seeking additional governmental interference
with broadcast programs. In a word, it seems to me that some
of your efforts have been directed at Increasing the very evils
which you have usually combatted. "
Mr. Caldwell9 s assigned topic was, "Freedom of the Air.
"I shall waste no time discussing freedom of speech by
radio in time of war. In my opinion, if the statutes now on the
books be given effect, no such freedom exists, since the Presi¬
dent can close down any station for any reason. He can also do
this on proclamation of a national emergency. I shall resist
the temptation to speculate as to what this means", the speaker
said getting into his stride.
"In time of peace - or of non-emergency - the situation
is bad enough. We have seen that a newspaper may not be suppress
ed for publishing defamation of public men, no matter how
scandalous or how regularly continued. Yet a broadcasting sta¬
tion can be put out of existence and its owner deprived of his
investment and means of livelihood if it is used for the oral
dissemination of exactly the same language.
"The power to suppress a broadcast station is exercised
principally by refusing to review a license because of utter¬
ances previously disseminated over the station, on the ground
that the utterances do not meet the test of !public interest,
convenience or necessity, 9 The story of how the intent of our
forefathers as expressed in the First Amendment, and the intent
of our modern lawmakers as expressed in the Radio Act, have been
successfully circumvented is one of the most interesting and
instructive in the annals of administrative law. We can only
glimpse at some of the chapter headings.
12/11/34
"The crux of the matter is that each broadcaster must
come to the Government every six months as a supplicent for the
right to continue in business. The agency to which he must
apply for renewal of license is the Federal Communications Commis¬
sion, formerly the Federal Radio Commission. This agency has the
power to issue licenses for a three-year period. There was a
period during which licenses were limited to three months, but
that period expired several years ago. Still, the Commission
persists in the six-months' limitation."
Mr. Caldwell cited the following as more or less
obvious conclusions of a preliminary character:
1. Broadcasting has succeeded the public platform.
It has become an agency of mass communication comparable to the
press, and is at present far and away the most impressive claim¬
ant for protection under the constitutional guaranty of the
freedom of speech just as the newspaper is the principal claimant
for protection under the sister guaranty of the freedom of the
press.
2. The test to apply is not whether there is now any
visible government restraint of that freedom, but rather it is
the power, under out Constitution and our laws, to impose such
a restraint,
3. A proper basis for compa.rison, if we can find it,
is the present scope of the freedom of the press.
"The statute, now the Communications Act but before
that the Radio Act, has, ever since 1927, contained a section
specifically prohibiting any censorship of radio programs and
any abridgment of free speech by the licensing authority. I
think the section means what it says", Mr. Caldwell concluded.
"I can prove it by references to the legislative
history of the Act, including the debates. It was intended to
maintain the policy of complete non-interference with broadcast
programs which had previously been followed by the Secretary
of Commerce during the several years prior to 1927 in which
he had the regulation of broadcasting. "
XXXXXXXX
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12/11/34
I
MULLEN RCA INFORMATION HEAD APPOINTMENT CONFIRMED
I
Confirmation is at hand with regard to the creation of
a Department of Information by the Radio Corporation of America
with Frank E. Mullen, formerly Director of Agriculture of the
National Broadcasting Company at Chicago. Mr. Mullen also takes
over the duties of Glenn I. Tucker, who resigned.
"The reorganization takes cognizance of the constantly
increasing number of requests to the Radio Corporation for informa
tion relating to all branches of radio”, an RCA statement explains
”The public and the press look upon RCA as an authoritative source
since its companies represent broadcasting, transoceanic, domestic
and marine radio- telegraphy , and manufacturing.
”Mr. Mullen is no stranger to the ’RCA family', having
been with the National Broadcasting Company since its formation
in 1926. His first NBC assignment was the organization of an
agricultural service, which he started at Station KFKX at
Hastings, Nebraska. He soon was transferred to Chicago, and
opened the offices and studios of NBC there.
” ’ The National Farm and Home Hour5, the noon broadcast¬
ing program that numbers a host of farmers and city dwellers
interested in agriculture among its followers, was organized by
Mr. Mullen six years ago. His work in directing that program has
given him an exceptionally wide acquaintance throughout the
country.
"Before entering radio work, Mr. Mullen was a newspaper
man. He was born in Kansas and spent his boyhood and high-school
days in South Dakota. He was a journalism student at Iowa State
College when the United States entered the war, and he enlisted
in the Army, in May, 1917. After serving overseas with the Tenth
Engineers from September of that year until February, 1919, he
completed his course at Ames and began newspaper work immediately
after his graduation. This led directly to his interest in radio,
when he was assigned in 1923 by the National Stockman and Farmer,
a weekly farm paper published in Pittsburgh, to organize the
first radio broadcasting service to farmers ever undertaken in
the United States. ”
XXXXXXXXX
COMMUNICATIONS NOTABLES GRIDIRON GUESTS
Among those from the Communications industry present at
the Gridiz’on Dinner in Washington last Saturday night were:
M. H, Aylesworth, President, N. B. C. ; James G. Harbord,
Chairman,, R. C.A, ; Richard C. Patterson, Jr., NBC, Davis Sarnoff
President, R.C.A. ; Judge E. 0. Sykes and Harapson Gary, Federal
Communications Commission.
X X X X X X
- 6 -
12/11/34
PACIFIC RADIOPHONE CARRIES U. S. -JAPAN FELICITATIONS
The inauguration of the radio- telephone between the
United States and Japan brought with it a cordial exchange between
Judge E. 0. Sykes, Chairman of the Federal Communications Commis¬
sion in Washington, and Takejiro Tokonami, Japanese Minister of
Communications in Tokyo. This followed a conversation between
Arthur W. Page, Vice-President of the American Telephone and
Telegraph Company, and Seichi Shindo, Director General of Tele¬
communications, and preceded the talk between Secretary Hull and
Minister of Foreign Affairs Koki Hirota.
Addressing Judge Sykes, Mr. Tokonami said that the
United States and Japan at last have become the two great
neighboring countries bordering the Pacific Ocean.
"Just at this moment it is very significant that a
radio telephone link has been established between Japan and the
United States", the Minister continued. "This new service, I
believe, will make cultural and economic ties of the two countries
closer and closer and develop our traditional friendship to a
great extent. "
"This is but another marvelous achievement whereby our
Nations are brought closer together and should further promote
the cordial relationships existing between these countries",
Judge Sykes replied.
"I must refer, with a great deal of pleasure, to the
sincere cooperation which has always existed between your dele¬
gations and ours to international radio-telegraph conferences.
We very much appreciate this cordial relationship and feel sure
that it will continue in the future. "
The voices from Japan were heard distinctly and as
someone observed "with an unmistakable suggestion of great dis¬
tance. " The first Japanese speaker began by saying, "Good
Morning", which brought a smile at this end of the line for,
though it was 10 o’clock Saturday morning in Tokyo, it was but
7 o'clock Friday night in Washington. As is usual in these
affairs, none of our diplomats spoke the language of the other
country. The Japanese all spoke English.
Those listening at the State Department here were Dr.
Stanley K. Hornbeck, Chief of the Division of Far Eastern Affairs;
Harry A. McBride, Assistant to the Secretary of State; Hugh S.
Cumming, Jr., Executive Assistant to the Secretary of State;
Maxwell M. Hamilton, Assistant Chief of the Division of Far
Eastern Affairs; Leo D. Sturgeon, Division of Far Eastern Affairs;
Michael J. McDermott, Chief of the Division of Current Information;
Hirosi Saito, Japanese Ambassador; Keinosuke Fujii, Counselor of
the Japanese Embassy; Takemi Miura, First Secretary of the Japanese
Embassy; L. B. Wilson, President, Chesapeake and Potomac Telephone
Co and J. W. Adams, Division Manager, American Telephone and
Telegraph Company.
7
12/11/34
Those in Tokyo were:
Kensuke Horiuchi, Chief, Bureau of American Affairs;
Joseph C. Grew, American Ambassador; Chokuro Kadono, Chairman,
Japanese-American Trade Council; and G. W. Gilman, Bell Telephone
Laboratories.
The commercial service was formally opened Saturday
afternoon by conversation between Mayor LaGuardia, of New York,
and Mayor Ushizurka, of Tokyo, and Takitora Ogata, editor-in-
chief of the Tokyo Asohi and Edwin L. James, Managing Editor of
the New York Times.
The commercial rate is $30 for three minutes. Speculat¬
ing upon what uses the Japanese might make of the service for
diplomatic purposes, someone remarked,
"They will not do a great deal of talking at that rate."
"The deuce they won't", a listener continued, "the
Japanese Embassy in Washington thinks nothing of spending $400
to $500 on a single message to Japan. "
The press arrangements in connection with the Japanese
telephone inauguration as carried out by the new A. T. & T.
Information Bureau in Washington, in charge of Edwin F. Hill,
were highly commended by the correspondents. With Mr. Hill on
this occasion was W. J. O'Connor, Assistant to President Gifford
of the Telephone Company.
Anticipating the difficulty the newspaper men might have
with the Japanese names and taking down the formal speeches,
they were supplied in advance with a list of the participants at
the State Department and at Tokyo, with continuity, telling
exactly when who in Washington would call who in Japan and vice
versa, what they would say to each other when they did. There
was also the full text of the formal greetings of the Americans
and Japanese and finally photographs of the wireless receiving
stations in Japan, the Japanese telephone operators, and a map
showing the new radio circuit from San Francisco to Tokyo.
Thus it was only necessary for the correspondents to
follow their copy and as they listened through specially provided
headphones, to jot down departures from the planned conversation
such as Mr. Saito, the Japanese Ambassador, wishing Mr. Grew,
the American Ambassador in Japan, "luck with his golf as well as
his official business", and the unexpected greeting of Mr. Grew’s
daughter, who was at the State Department with .her father in Japan.
Everything, including the slightest details, were worked
out in advance for the convenience of the correspondents. It
must have taken many days, if not weeks, to gather the text and
photographs from Japan to say nothing of the miracle anyone has
to perform to get anything ahead of time, if at all, from our own
State Department.
8
. I.iV l
12/11/34
For the ac commode. t ion of the correspondents, since the
ceremonies came at the dinner hour, a buffet supper was served.
Here, too, was something different. It seems to be the general
idea that at any affair in connection with the press there has to
be enough liquor to float a battleship. There wasn’t a drop at
the A. T. & T. supper which, on a working assignment, was fitting
and proper, in the opinion of this writer (who is far from being
a day). The result was that by 7:30 o'clock, most correspondents
were back in their offices with the complete story, with clear
heards to write it, and with plenty of time to catch the early
edition. After all, what the newspaper men want in covering an
assignment like this is service, and they got it at the A. T. & T,
Japanese telephone opening with a capital {iS",
R. D. H*
xxxxxxxxx
DUAL CARRIER OFFICER RESTRICTION DEFINED
At its general session last Friday, the Federal Com¬
munications Commission issued Commission Order No. 8, which reads
as follows:
"The Commission having under further consideration the
matter of regulations governing authorizations of persons, under
Section 212 of the Communications Act of 1934, to hold the posi¬
tions of officer or director of more than one carrier:
"IT IS ORDERED, That the regulations prescribed in
Commission Order No. 4 adopted on October 9, 1934, as amended in
Commission Order Noa 7 on November 2, 1934, apply to any person
authorized by or undertaking for each of two or more carriers to
perform the duties, or any of the duties, ordinarily performed
by a Director, President, Vice-President, Secretary, Treasurer,
G-eneral Counsel, General Solicitor, General Attorney, Comptroller,
General Auditor, General Manager, General Commercial Manager,
Chief Engineer, General Superintendent , General Land and Tax
Agent, or Chief Purchasing Agent. "
XXXXXXXXX
TOM SHIPP IS LAID UP
Thomas R. Shipp, well known publicist and personal
representative in Washington of A. Atwater Kent, is sojourning
at the George Washington Hospital as a result of cranking a
motorboat at his country place. Mr. Shipp sustained injuries to
his back necessitating an operation. However, he is now progress¬
ing nicely and expects to leave the hospital within two weeks, if
not sooner.
X X X X X X X
- 9 -
]
12/11/34
BROOKLYN EAGLE'S RADIO PLEA HEARD
When questioned as to the financial ability to , operate
a radio station in Brooklyn, M. Preston Goodfellow, publisher of
the Brooklyn Daily Eagle , testified that the Eagle was making
a profit and could support a first class station. The Eagle
has applied for the frequencies now being used by four other
Brooklyn stations and if successful in this, hopes to combine
them into a single station,
Mr. Goodfellow estimated that it would cost $50,000 to
set up the proposed new station and $150,000 to operate it the
first year. He said that a considerable part of this money
would be available immediately, under a financial arrangement
contingent upon the issuance of the license.
Inquiries about a broadcast "Little Red School House"
over Station WVFW, Brooklyn, were made by Thomas P, Littlepage, Jr. ,
counsel for the Brooklyn Eagle. Miss Anna Dirain, of WVFW said
that the Station had no connection with the feature. Miss
Dimin explained the announcer invites children supposed to have
talent, to come up for auditions.
"They are charged a fee, are they not?" Mr, Littlepage
inquired. "Have any of the children who came up there ever been
turned down?"
Miss Dimin said she didn't know. Miss Gladys Pickell
was mentioned as a teacher of dancing, but having no connection
with the station.
"She is paid nothing, but she pays the station for the
broadcast", Miss Dimin explained,
"What sort of split does this lady have with the station
for the money taken in on the program of the Little Red School
House?" Mr. Littlepage inquired. "Is there any relation betv/een
the broadcasting time paid for with the amount of money which is
taken in as fees?"
Miss Dimin replied she did not know anything about the
financial end of the station.
Referring to Messrs. Gilard, Croninberg and Di Angelo,
owners of WLTH, WARD and WVFW, all in Brooklyn, Charles D,
Isaacson, who acted as program director of these three stations,
said:
"I gradually came to the conclusion that those men were
temperamentally unfit to operate a radio station; that as far as
Brooklyn was concerned, they had no real interest in the community;
that they had no interest excepting operating the station for the
cheapest and pettiest kind of commercial purposes whatever, and
whatever we did of a civic or educational character was done only
10
12/11/34
as a gesture to fool the community, and whatever they did was
only for immediate commercial purposes. "
Having reached this conclusion, Mr. Isaacson said that
he resigned.
X X X X X X X
DECLARES TELEGRAPH COMPETITION MAKES US RIDICULOUS ABROAD
When Sosthenese Behn, President of the International
Telephone and Telegraph Company, was asked by Dr. Irvin Stewart,
Chairman of the Telegraph Division of the Federal Communications
Commission what has been the effect upon American interests of
competition in the foreign field, that is, competition with the
American communication companies, he replied:
"If I may use the word, making us ridiculous. That
is really the answer. If I go to London to discuss something
they consider what they want, and discuss it with the Western
Union, the Radio Corporation and ourselves, and they play one
against the other. That is true of France. It is true of
Germany. It is true of Switzerland. "
Dr. Stewart asked if the companies within the British
merger had been better off or worse off or in about the same
condition than they would have been if the merger had not taken
place ?
"I think they arc distinctly better off", Mr. Behn
replied. "In fact if the merger had not taken place, there would
have been all kinds of failures, very disastrous conditions. And
the British Government decided that it was in the best interest
of the people, the public interest, to conserve these interests
by unifying them. "
"Is it a matter of keeping the cables from being junked?
Dr. Stewart inquired.
"The British Naval officers perhaps attach more import¬
ance to cables than our officials have. I certainly believe that
the cables still have a part to play between shore to shore, but
the radio has made great strides and I must admit we are very
radio-minded, but we still believe the cables have a part to play,
and that they will gradually be substituted and supplanted by
radio, with the art developing as it is."
Addressing David Sarnoff, President of the Radio Corpora
tion of America, Dr* Stewart said he thought perhaps a statement
Mr. Sarnoff had made might be open to the interpretation that a
merger would only be salvaging something for the owners of the
cable.
11
4
12/11/34
"I had not intended to make that statement but I have
made it", Mr. Sarnoff replied. "That inference is inescapable.
I would not recommend a merger for the purpose of salvaging the
cables. I do say that a merger may save the cables."
Mr. Sarnoff said that he would not favor one company
to control all forms of communication, - telegraph, telephone
radio.
"I would favor one unified telegraph to compete with
the present unified telephone company in its own field", the
RCA head declared.
There was some extra entertainment for the spectators
when later Mr. Sarnoff, discussing the matter of unemployment
which might be caused by a merger said:
"I noticed in the testimony yesterday that Colonel
Behn referred to the possibility of a few Vice-Presidents, per¬
haps, losing their jobs, but he said that was not important,
"I will go him one better and say that perhaps a fewr
presidents might lose their jobs and that would not be important. "
XXXXXXXX
CANADA CHARGES RADIO INTERFERENCE TO U. S.
The Canadian Radio Broadcasting Commission announced
yesterday (Dec. 10) at Ottawa, the Associated Press reports,
that representations have been ma.de to Washington concerning
the alleged blanketing of Canadian stations by stations in the
United States. In particular, the Commission said many complaints
had been caused by the blanketing of Station CFRS, in Toronto,
by Station WLW, in Cincinnati.
The Commission requested that action be taken for the
removal of such interference.
X X X X X X X
12 -
xi bsd I
■ ' • • * -■
021X11,009*3 on ...
— 9 ; : :-9: V
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
C O N F I D E N T I A L - Not for Publication
/
INDEX TO ISSUE OP DECEMBER 14, 1934.
Advocates Law Changed So FCC Not Judge And Prosecutor . 2
Rayburn Likely To Head House Communications Committee . 3
- r
Sam Pickard, Columbia V-P, In Auto Accident . 4
Press-Radio Fold-Up Predicted . 5
Broadcast Advertising Probably 15% Greater Than 1933 . ....6
Broadcasters To Meet In Colorado In July . 6
f
Congress Broadcast Must Await New Speaker's Consent . 8
ABS Network Executives Meet In N. Y . 9
Said He Was "Deac" . . . 10
Powel Crosley Scores Victory In Night Baseball. . 10
I. T. & T. Shows $1, 457, 398 Nine Months' Profit . 11
"0. H. " Advises Xmas Shoppers . 11
Decisions Of The FCC Broadcast Division. . . . 11
No. 783
I
ADVOCATES LAW CHANGED SO FCC NOT JUDGE AND PROSECUTOR
The Federal Communications Commission is one of the
most perfect and complete amalgams of executive, legislative and
judicial powers in the Federal Government, in the opinion of
Louis G. Caldwell.
’’Under the standard of ’public interest, convenience,
or necessity', it makes the rules to which a broadcaster must con¬
form, it acts as prosecutor, and sits as judge on the cases in
which it is also the prosecutor", Mr. Caldwell asserted.
"Here let me mention an astounding paradox. The Com¬
mission has repeatedly held that it does not have the power to
make any regulations governing the contents of programs or even
advertising because of the prohibition against censorship in
Section 29. Figuratively, in the same breath, it has warned
broadcasters that it will take such matters into account in deter¬
mining whether it will renew licenses. In other words, after
listening to a mass of evidence adduced without formulated issues,
the Commission will give an ex post facto judgment as to what
should have been the rule the broadcaster should have known enough
to abide by.
"Bad as would be the regulation- making power which the
Commission disclaims, it would at least afford a measure of cer¬
tainty as to the duties of the licensee. The strange thing is
that both the power to renew licenses and the power to make regu¬
lations are governed by exactly the same phrase in the statute,
'public interest, convenience or necessity', but the phrase has
a chamelion-like character. "
Even without resorting to Section 29 forbidding censor¬
ship, Mr. Caldwell was confident that the phrase "public interest,
convenience or necessity" will not bear the interpretation put
upon it by the Commission in connection with renewal of licenses.
He argued that perfectly good precedents can be found in deci¬
sions of the Supreme Court to show that it must be given a more
restricted meaning, analogous to that given similar phrases in
public utility statutes.
"It was never intended as a cloak for censorship. Yet
that is exactly what it is being used for", Mr. Caldwell continued.
"Those who are not familiar with the Commission’s decisions would
be chocked at the application of this standard to particular
cases in which, as the result of defamatory utterances milder on
the whole than those involved in the Minnesota Gag Law Case, broad¬
casting stations have been forever silenced.
2
12/14/54
"What are the results? One immediate and important con¬
sequence is that this state of the law forces the broadcasters
themselves, or at least the more timorous among them, to exercise
what some of you complain of as a private censorship over the
speeches of those who use their microphones. This tendency is
further encouraged by the prohibition against obscene, indecent
or profane language on the Radio Act, and by the position taken
by the Nebraska Supreme Court which held a broadcaster liable for
defamation occurring in a political speech which it was forbidden
to censor by Section 18 of the Radio Act. "
Another important consequence is that the guaranty of
free speech has ceased to keep pace with the progress of science,
Mr. Caldwell declared. It still exists for the obsolescent public
platform but not for great means of mass communication which is
replacing it. This, in his opinion, is but another way of saying
that freedom of speech has failed to keep abreast of freedom of
the press, and the latter henceforth must carry the torch alone.
"I know of no justification for such consequences. The
only justifications I have heard vanish like the Arabs when the
facts are frankly faced", the speaker concluded. "I wish time
permitted me to discuss in detail the remedies that seem called
for. I have not given up hope, of course, that some day broad¬
casting will achieve a victory comparable to the Minnesota Gag
Law Case, The present state of its rights is like the majority
opinion in the Milwaukee Leader Case. It is interesting to note
that in the cases both of the press and broadcasting, the defeats
for liberty of expression have occurred in rulings by administra¬
tive officials enjoying a broad combination of executive, legis¬
lative and judicial powers, on one side the Postmaster G-eneral
and on the other the Federal Radio Commission.
The statute should be amended if necessary. The Commis¬
sion should issue licenses for the maximum period of three years
permitted by statute. It should cease using proceedings on appli¬
cations for renewal of license for discipline of licensees, and
should employ revocation proceedings in which it will have the
burden of alleging and proving specific misconduct. More import¬
ant than all this, the law should be changed so that it would cease
to be the judge in a case in which it is also the prosecutor. "
XXXXXXXX
RAYBURN LIKELY TO HEAD HOUSE COMMUNICATIONS COMMITTEE
Representative Sam Rayburn out as a candidate for Speaker
of the House of Representatives, appears to assure his again serv¬
ing as Chairman of the Interstate Commerce Committee, which will
have jurisdiction over communications matters in the House. Mr.
Rayburn was the co-author of the 1954 Communications Act.
5
12/14/34
Rayburn's withdrawal from the Speakership race apparently
left Representative Joseph W. Byrns, of Tennessee, victor in the
field. The matter will be decided at a caucus January 2.
The Rayburn announcement was not entirely unexpected.
There had been rumors of withdrawal ever since his return to
Washington. His statement followed withdrawal of Representative
John E. Rankin, of Mississippi, from the contest and precipitation
of a rough and tumble scramble for the floor leadership.
The Rayburn statement was brief. "I am no longer a candi¬
date for Speaker", he said. "There are no alibis. Under the
circumstances, I cannot be elected."
Rayburn made a determined campaign for the speakership,
with the reputed support of Prof. Raymond Moley, friend of the
President, and some Administration officials. His chances began
to wane as soon as the White House made definitely clear that the
President would take no part.
XXXXXXXX
SAM PICKARD, COLUMBIA V-P, IN AUTO ACCIDENT
Sam Pickard, Vice-President of the Columbia Broadcasting
System, and Mrs. Pickard, were victims of an automobile accident
in New York Monday night. While both were painfully hurt and a
facial operation was necessary in the case of Mr. Pickard, it is
not believed the injuries to either are of a permanent nature.
They are now at the United Hospital at Port Chester, N, Y. Harry
C. Butcher, Washington manager of Columbia, who visited them,
reports that both are doing nicely.
According to Mr, Butcher, Mr. and Mrs. Pickard, in a
new Buick, had driven down from their home in Rye, to New York
City, to take Mr. and Mrs. Charles Myers, of Station KOIN,
Portland, Ore. , to the theatre. After the performance, the Pickards
drove Mr. and Mrs. Myers to their hotel and started back horae6
Mrs. Pickard was driving and Mr. Pickard sat beside her on the
front seat. They sere closely following a street car at 135th
Street and Lenox Avenue at about 1 o'clock in the morning. The
street car stopped suddenly and a truck at their side prevented
turning out with the result that the Pickard automobile crashed
into the street car.
Mr. Pickard was hurled through the wind- shield glass
and badly cut about the head. Luckily his hat was pulled down
and his eyes and a part of his head were thus protected. Plastic
surgeons later had Mr. Pickard on the operating table for about
5-| hours. Mrs. Pickard suffered a broken knee-cap and the loss
of several teeth.
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12/14/34
PRESS-RADIO FOLD-UP PREDICTED
The future of the Press-Radio program is reported in
extreme doubt in persistent rumors that have been going through
the industry for the last few weeks. G-eneral dissatisfaction with
the program, both on the inside of P-R, in the newspaper factions
involved, and the outside, the broadcasters are said to be the
principal factors involved.
"The story is that the program will be dropped within
the near future or else changed radically", Billboard Magazine
relates. "However, James Barrett, P-R manager, stated that he knew
nothing about the reports*
"Internal dissatisfaction with P-R is credited mainly
to the United Press. As was the case with the Hearst news services,
UP was collecting heavily from radio stations for news service
before the present setup was put through. Naturally that revenue
went out the window when the broadcasters and publishers agreed
on P-R, UP is now said to be champing at the bit again to go
after that income. Another unverified report is that Universal
Service and INS will shortly start feeding all Hearst stations
feature stories, especially prepared for the outlets* This,
obviously, could soon be changed to a direct news service.
"Another factor, but as yet under cover, is the Havas
news agency, a French government subsidized organization* Latter
service, it is said, has lost considerable revenue formerly earned
in this country and is aching to get into the radio field directly.
Havas now supplies Herb Moore's Trans-Radio with European matter,
Havas is also said to have assumed an indirect interest in T-R,
helping to pay for recent advertisements bought by the last-named
service.
"If P-R were to blow up, it probably could not develop
until early next year, after the Associated Press meeting, since
any action taken involving AP must be okehed by the Board of
Directors. Final word on the UP angle would be up to Roy Howard.
It is said UP wants the method changed so that it can go back into
the radio news selling field.
"P-R now has about 222 stations and T-R 150."
X X X X X X X
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12/14/34
BROADCAST ADVERTISING PROBABLY 15/ GREATER THAN 1933
Broadcast advertising volume in October was the most
promising in recent months. Total time sales amounted to $7,377,084,
in again of 39.3/ above September. Regional networks continued
their remarkable growth of business of recent months, while national
network volume rose 77.0/ as against September. National spot
broadcast advertising increased 60.0/ during the month, and local
volume 27.8/.
Broadcast advertising during October of the current year
was 28. 5/ greater than during the same period of 1933. National
network advertising was 39.5/ greater than during the same period
of last year. Regional network advertising was materially higher
in volume, while national spot business showed an increase of 17.3/
over last October. National network advertising during the current
month totaled $4,527,002, a figure 5.5/ greater than March, 1932,
the previous peak of network advertising.
Following an unfavorable showing in recent months, local
broadcast advertising in October finally exceeded that of the same
period of the preceding year, rising to 7.0/ above October, 1933.
If present trends are maintained, which seems probable,
total broadcast advertising for the year should be approximately
15/ greater than 1933, though still somewhat below the 1931 high
for the medium0
XXXXXXXX
BROADCASTERS TO MEET IN COLORADO IN JULY
Colorado has been decided upon as the place of the next
annual meeting of the National Association of Broadcasters. This
was the decision of the Board of Directors of the Association who
met in New York last Wednesday and Thursday. The annual meeting
will be held in either Denver or Colorado Springs during the early
part of July. The city and the exact date has been left to the
Executive Committee.
As the principal work of the forthcoming year, the
National Association of Broadcasters will endeavor to organize
a committee in every State. The Chairman of the State Committees
will be a member of a National Committee. Philip G. Loucks,
Managing Director, was ordered to concentrate upon this work and
to visit the various States in order to speed up the organization.
As a result of this, Mr. Loucks expects to put in a considerable
amount of time during the next few months travelling.
State Committees of the NAB organized experimentally in
New York and more recently in Alabama, are reported to have been
highly successful as a result of which State organization
will be undertaken by the Association on a nation-wide scale.
6
\ . 4-
12/14/34
Owing to the illness of Joseph Hostettler, of Cleveland,
copyright counsel, copyright matters which the directors expected
to take up were deferred. The Copyright Committee was authorized
to receive Mr. Hostettler’ s report at a later date and given
power to act. Five new members of the Association were elected
bringing the membership up to 375.
The following committees were appointed for the coming
year:
COMMITTEE OF FIVE - Arthur B. Church, Chairman, KMBC,
Kansas City, Mo.; Walter J. Damm, Station WTMJ, Milwaukee, Wis. ;
John Karol, Columbia Broadcasting System, New York City; Ed Kobak,
National Broadcasting Co. , New York City; John V. L. Hogan,
Station W2XR, New York City.
COPYRIGHT COMMITTEE - A. J. McCosker, Station WOR, New
York City; Isaac D. Levy, Station WCAU, Philadelphia, Pa.; Frank
M. Russell, Station WRC, Washington, D. C. ; I. Z. Buckwalter,
Station WGAL, Lancaster, Pa. ; Walter J. Damm, Station WTMJ, Mil¬
waukee, Wis.
COST ACCOUNTING COMMITTEE - H. K. Carpenter, Station WHK,
Cleveland; Walter J. Damm, WTMJ, Milwaukee; M. R. Runyon, WABC,
New York City; H. F. McKeon, WJZ, New York City; R. W. Hoffman,
WHFC, Chicago; Lewis Weiss, WJR, Detroit; J. H. Ryan, WSPD, Toledo;
J. L. Kaufman, WINS, New York City; I. Z. Buckwalter, WGAL, Lan¬
caster, Pa.
ENGINEERING COMMITTEE - J. A. Chambers, WLW, Cincinnati;
C. W. Horn, WEAF, New York City; E. K. Cohan, WABC, New York City;
E. L. Gove, WHK, Cleveland; John E. Durrell, KJBS, San Francisco;
J. H. DeWitt, Jr. , WSM, Nashville; Frank B. Falknor, WBBM, Chicago;
Carl Myers, WGN , Chicago; John E. Fetzer, WKZO, Kalamazoo; Lynne
C. Smeby, KSTP , St. Paul; John V. L. Hogan, W2XR, New York City;
H. Harvey, KFAB, Linconl, Nebr. ; WLIT, James M. Nassau, Philadel¬
phia; WIL, L. A. Benson, St. Louis; Hugh McCartney, WCCO, Minnea¬
polis; Jim Middlebrooks, WAP I, Birmingham.
TAX COMMITTEE - E. M. Elkin, KDKA, Pittsburgh; P. J.
Hennessey, WJZ, New York City; Sydney M. Kaye, WABC, New York City;
A. Z, Moore, WKJC, Lancaster, Pa. ; Edgar T. Bell, WKY, Oklahoma
City; WJDX, Wiley P. Harris, Jackson, Miss. ; Gerald King, KFWB,
Hollywood, Cal. ; Birt Fisher, KOMO, Seattle, Wash*
COMMERCIAL COMMITTEE - Arbhur 3. Church, KMBC , Kansas
City, Mo.; Edwin M. Spence, WPG, Atlantic City, N.J. ; John Karol,
WABC, New York City; Ed Kobak, WJZ, New York City; Roy L. Harlow,
WAAB, Boston; John Elmer, WCBM, Baltimore, Md. ; I. R. Lounsberry,
WGR, Buffalo; C. D. Mastin, WNBF, Binghamton, N. Y. ; J. H. Ryan,
WSPD, Toledo, Ohio; John L. Clark, WLW, Cincinnati; Robert A.
Street, WCAU, Philadelphia, Pa. ; Nathan Lord, WAVE, Louisville,
Ky. ; H. K. Carpenter, WHK, Cleveland; John F. Patt, WGAR,
Cleveland; W, W. Gedge, WMBC, Detroit, Mich. ; Gayle V. Grubb,
WKY, Oklahoma City, Okla, ; Martin B. Campbell, WFAA, Dallas.
7
12/14/34
Also, Hugh A. L. Halff, WOAI , San Antonio; H. W. Slavick,
WMC, Memphis; S. E. Adcock, TOOL, Knoxville; E. V/. Carr, WDNC,
Durham, N. C. ; George F. Isaac, WGN, Chicago; D. E. Kendrick,
WKBF, Indianapolis; J. 0. Maland, WHO, Des Moines; Cliarles G.
Burke, WDAY, Fargo, N. D. ; Walter J. Damm, WTMJ , Milwaukee; Lester
E. Cox, KGBX, Springfield, Mo*; G. C. Hamilton, KFBK, Sacramento,
Cal.; H. J. Quillian, KOMO, Seattle, Wash.; Arthur J. Kemp,
KHJ, Los Angeles, Cal. ; Earl J. Glade, KSL, Salt Lake City, Utah;
Arthur F. Kales, KECA, Los Angeles, Cal. ; Ralph R, Brunton, KJBS,
San Francisco, Cal.
Also, William S. Hedges, WEAF, New York City; Stanley
Hubbard, KSTP, St. Paul, Minn. ; Paul Keston, WABC, New York City;
LeRoy Mark, WOL, Washington, D„ C, ; Fred Palmer, TONS, Columbus,
0. ; Glenn Snyder, WLS, Chicago, Ill. ; J. C. Henrahan, KSO, Des
Moines, la. ; S. G. Persons, WSFA, Montgomery, Ala. ; Guy Earle,
KNX, Hollywood, Cal.; C. W. Myers, KOIN, Portland, Ore.
Ex Officio Members - J. Truman Ward, President, NAB;
Philip G. Loucks, Managing Director, NAB; James W, Baldwin,
Executive Officer, Code Authority for the Radio Broadcasting
Industry,
XXXXXXXXX
CONGRESS BROADCAST MUST AWAIT NEW SPEAKER'S CONSENT
Unless some tentative agreement can be reached with
Representative Byrns, of Tennessee, and the other candidates for
Speaker of the House of Representatives, the networks may be kept
in hot water on the question as to whether or not they will be
able to broadcast the opening of the new Congress Thursday,
January 3.
Hitherto permission to station mikes at various points
in and around the House and Senate floors has been sought and
obtained from the Speaker of the House of Representatives, usually
a hold-over from the previous session. This year, because of the
death of Speaker Rainey, with a Speaker yet to be elected, both
the National Broadcasting Company and Columbia Broadcasting System
must wait until the eleventh hour before obtaining actual permis¬
sion. Although both systems are now completing usual plans to
broadcast the event, there is no one in authority now to say "yes"
or "no. " Consequently both chains must obtain final word on
January 2, if the election of Majority Leader Byrns as Speaker is
conceded at that time.
With Bob Trout for Columbia in the House library room,
and Carleton Smith for NBC in the House record room, both systems
will handle the event as in former years with additional mikes
stationed at strategic points to bring listeners accounts of
actual election of the new Speaker; administration of his oath of
office; swearing in of new members, and adoption of various reso¬
lutions. The broadcast at present is scheduled for 11:30 A. M.
January 3, with possibility of a broadcast of the joint session
the following day.
- 8 -
XXXXXXXX
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ABS NETWORK EXECUTIVES MEET IN N. Y.
The American Broadcasting System set a precedent in net¬
work radio practise last Tuesday when, for the first time, an
entire network was fully represented at a meeting of the ow ners
and operators of the stations affiliated with the system. The
meeting was called in New York by George B. Storer, President of
ABS, for a discussion of efficient coordination of operations
and for a round table exchange of mutual problems relating to the
new network and the member stations, as well as coordination of
station and network promotion and rate practices.
The delegates at the session were from the entire terri¬
tory of the ABS network, extending from Washington to Boston and
Buffalo in the East and North and to St. Louis and Chicago in
the West, and including the principal markets of the nation. Mr.
Storer presided at the meeting, which was held in the Waldorf
Astoria Hotel*
The results of and the listener and station reactions
to the first six weeks of operation of the new network were an
important part of the discussion. The station owners and operators
expressed their views with relation to their local broadcast areas,
the developments they are effecting individually and as network
units.
Attending the meeting with Mr. Storer as representatives
of ABS, were James K. Norris, Vice-President and Treasurer; Fred
Weber, Vice-President in Charge of Network Operations; Albert A.
Cormier, new Vice-President in Charge of Sales, and Edward Ale-
shire, recently appointed Vice-President in Charge of Sales
Research and Development.
The representatives of the affiliated stations were:
Alfred Pote, Managing Director and Operator, and William Pote,
WMEX, Boston, Mass,; William S. Cherry, Jr., President, WPRO,
Providence, R. I. ; William J. Pape, President, W1X33, Waterbury,
Conn.; Benedict Gimbel, Jr., President, WIP, Philadelphia, Pa.;
Clair R. McCollough, President, WDEL, Wilmington, Del. ; John
Elmer, President, WCBM, Baltimore, Md. ; H. J. Brennen, President,
KQV, Pittsburgh, Pa. ; Robert M. Thompson, Commercial Manager, KQV,
Pittsburgh, Pa.; H. H. Howell, President, WEBR, Buffalo, N. Y. ;
Roy Albertson, General Manager, WEBR, Buffalo, N. Y. ; Ralph G.
Matheson, Treasurer, WHDH, Boston, Mass. ; Harold E. Smith, Presi¬
dent, WABY, Albany, N, Y. ; Ralph L. Atlass, President, WIND-WJJD,
Chicago, Ill.; William A. Clark, Manager, WFBE, Cincinnati, Ohio;
James L. Hughes, General Manager, WHBF, Rock Island, Ill. ; L. A.
Benson, President, WIL, St, Louis, Mo,
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12/14/34
SAID HE WAS "DEAC"
The following appeared in the column of Kay Ware, who
covers the night clubs for the Washington Post :
"The Heigh-Ho Club entertained Ina Claire, Gilbert
Miller and members of the cast in local play Monday night.
Assistant Stage Manager James Donohue keeps watchful eye on Miss
Claire.
"Also floating around that evening was a gentleman
who presented himself as Milton H. Aylesworth, of New York, NBC-
RKO president. Introduced himself to James Struthers, dancing
there, to Pete Macias, neither of whom could identify him as the
original. Every time someone who knew Mr. Aylesworth tried to
find him, he had disappeared. "
XXXXXXXXX
POWEL CROSLEY SCORES VICTORY IN NIGHT BASEBALL
Breaking down a barrier which they themselves had set
up against the Innovation several years ago when it became the
rage among the minor leagues, the club owners of the National
League in New York voted to admit night baseball on a limited
scale.
Powel Crosley, Jr. , radio manufacturer and owner of
the 'Cincinnati Reds" was the leader in the night opening movement.
Under the new rule, as it was explained by President
Ford C. Frick, each club is privileged to stage up to seven night
games at home during the course of the 1935 championship season.
"Powel Crosley, owner of the Cincinnati Reds, led the
fight for the acceptance of night baseball and scored a rather
amazing victory in view of the league’s set stand against the
matter several years ago when it swept like wildfire through the
minor leagues", John Drebinger writes in the New York Times.
"Crosley, however, fortified with weighty statistics
which showed the tremendous disadvantage under which clubs of the
smaller cities in the circuit operated, apparently carried the
day by the sheer force of his argument. In Cincinnati, during
1934, he pointed out, 70 per cent of the Reds’ gross home attend¬
ances for the year was recorded on only fifteen playing days,
these including opening day, Sundays and holidays. "
XXXXXXXX
-10 -
12/14/34
I. T. & T. SHOWS $1,457,398 NINE MONTHS' PROFIT
The International Telephone and Telegraph Corporation
reported this week for the nine months ended on Sept. 30, a con¬
solidated net income of $1,457,398 after all charges, minority
interest and other deductions. This was equal to nearly 23 cents
a share on 6,339,002 shares of stock. For the same period last
year the company reported a net loss of $239,223. G-ross earnings
in the nine months this year amounted to $57,493,173, compared with
$52,416,203 in 1933, and included $266,363 of non-recurring in¬
come. Operating revenues of communications companies and gross
profit on sales of manufacturing companies totaled $50,854,849
per the period, and other revenues included $2,933,323 income from
Spanish National Telephone Company as interest, dividends and
fees for service, and $1,465,047 from affiliated companies.
The Postal Telegraph and Cable Corporation reported for
the nine months a net loss of $1,051,280 after all interest
charges, including non-recurring income of $266,363, comparing with
a net loss of $1,142,079 for the same period in 1933.
XXXXXXXX
"0. H." ADVISES XMAS SHOPPERS
Christmas shoppers will get a suggestion, and some
practical advice about how to select a new radio set as a gift
when they hear Orestes H. Caldwell, editor of Radio Retailing
and former Federal Radio Commissioner, over an NBC-WEAF network
on Monday, December 17.
New radio receiving sets will bulk large in the gift
buying which is expected to make this the biggest Christmas shop¬
ping season since 1929, according to reports of manufacturers.
Caldwell will explain briefly the essential qualities of a good
set and the tests to make to assure that the buyer's requirements
are met. He will speak at 6:35 P.M. ,E.S.T. , from the NBC studios
in Radio City.
XXXXXXXX
DECISIONS OF THE FCC BROADCAST DIVISION
December 11 - APPLICATIONS GRANTED - WKBO, Keystone Broad¬
casting Corp. , Harrisburg, Pa., C.P. to make changes in equipment
and increase daytime power from 100 to 250 watts; WMBF , Howitt-
Wood Radio Co. , Inc. , Binghamton, N. Y. , C.P. to make changes in
equipment and increase power from 100 watts to 100 watts night, 250
watts, LS; WKBZ, Karl L. Ashbacker, Muskegon, Mich., C.P. to make
changes in equipment and increase power from 100 watts to 100 watts,
11 -
12.14/34
250 watts, LS; WIBU, Wm. C. Forrest, Poynette Wis. , C.P. to make
changes in equipment and increase day power from 100 to 250 watts;
KRE, 1st Congregational Church, Berkeley, Cal., C.P. to make changes
in equipment and increase day power to 250 watts; KLO, Interstate
Broadcasting Corp. , Ogden, Utah, C.P. to install new equipment;
WS PA, d/b as The Voice of South Carolina, Spartanburg, S. C. ,
modification of C.P. approving transmitter site in Spartanburg;
KFRO, Voice of Longview, Longview, Tex. , modification of C.p. to
make changes in equipment and move station to about i? mi. city
limits of Longview on Greet St. ; SIBA, Badger Broadcasting Co. ,
Inc. , Madison, Wis. , 60 day extension of special temp, experimental
authority to use 1 KW night; WMAQ, , National Broadcasting Co. , Inc. ,
Chicago, Ill., modification of C.p. extending commencement date
to Dec. 3, 1934 and completion date to April 4, 1935.
Also, KLZ, The Reynolds Radio Co. , Inc. , Denver, Colo. , modi¬
fication of C.P. extending commencement date to Dec. 1, 1934, and
completion date to April 1, 1935; KGIX, J. M. Heaton, Las Vegas,
Nevada, modification of C,po extending completion date to Feb. 2,
1935; WSUI, State University of Iowa, Iowa City, la., modification
of license increasing daytime power from 500 watts to 1 KW, and
change hours of operation from specified to unlimited; WFEA , New
Hampshire Broadcasting Co. , Manchester, N. H. , license covering
increase in day power from 500 w. to 1 KW, unlimited time; WNBX,
WNBX Broadcasting Corp. , Springfield, Vt„ , license covering
increase in power and hours of operation of daytime only to day¬
time until sunset at Erie, Pa. , and changes in equipment, 1260 kc. ,
1 KW; WHDL , Tupper Lake Broadcasting Co. , Inc. , Olea.n, N. Y. ,
license covering move of station from Tupper Lake to Olean, N. Y. ,
1420 kc., 100 w. daytime.
Also, WBNS , WBNS, Inc. , Columbus, 0. , license covering local
move, 1430 kc. , 500 w. night, 1 KW day, unltd. ; WIBM, WIBM, Inc. ,
Jackson, Mich. , license to cover changes in eqpt. and increase in
daytime power to 250 watts, 1370 kc. , 100 w, night, unltd; WJBK,
Jas. F. Hopkins, Inc. , Detroit, Mich. , license covering changes
in eqpt. and increase in daytime power, 1500 kc. , 100 w. night,
250 w. day, unltd.; WRAK , WRAK, Inc., Williamsport, Pa., license
covering local move, making changes in eqpt. , and increasing day¬
time power to 250 watts, 1370 kc. , 100 w. night, unltd. ; KYW,
Westinghou.se E. & M. Co. , Philadelphia, Pa.. , license covering move
of station from Chicago to Philadelphia, and installing new eqpt. ,
1020 kc. , 10 KW, unltd, time; KGRS, E. B. Gish (Gish Radio Serv. ) ,
Amarillo, Tex. , license covering changes in eqpt, and increase in
daytime power from 1 KW to KW, 1410 kc. , 1 KW night, specified
hours; WJBC , Kaskaskia Broadcasting Co,, Bloomington, Ill., license
covering move of station from LaSalle, Ill. to Bloomington, Ill. ,
1200 kc. , 100 w. , shares with W JBL ,
Also, KFWB, Warner Bros. Broadcasting Corp. , Hollywood,
Cal, , license covering changes in eqpt. and increase in day power
from 1 KW to 2-| KW, 950 kc. , 1 KW night, unlimited; KOIN, KOIN,
Inc. , Portland, Ore. , license covering changes in eqpt. and increase
in daytime power from 1 KW to 2j KW, 940 kc. , 1 KW night, unltd;
WFBL, Onondaga Radio Broadcasting Corp., Syracuse, N. Y. , modifica¬
tion of license increasing day power from 2-| to 5 KW.
XXXXXXXX
- 12 -
Rep. Cellers Abandons Brooklyn Station Board . 2
Television To Awaken Art Appreciation, Sarnoff Says . 4
Defeated Congressman Predicts Station License Fees . .5
Everything Looks 0. K. To RMA President For 1935. . 6
Dill Still Hopes To Establish Radio News Service . 7
Says Philadelphia Orchestra Overlooked Radio . 7
Two Beacons On WOR Transmitter Put In Operation Recently . 8
More Radios Than Telephones? . 8
Industry Notes . 9
Federal Move Setting Aside Depreciation Order Cited . 10
City Sales Tax On Actual Cash Only . . . 10
Variable Impedance Matching For All-Wave Reception . 11
Editor Picked As NBC Agriculture Head. . . 11
Applications Granted By Broadcast Division, FCC . 11
No. 784
umiUKiwm CO., Iw.
legal department
®E0
DEC 1 9 1934 li
|7l?l?llO|«|12|l|2|8iiilL
*
December 18, 1934.
REP. CELLERS ABANDONS BROOKLYN STATION BOARD
Completely reversing himself in a declaration he had
made that newspapers should not be allowed to own and operate
radio stations, Representative Emanuel Cellers, of Brooklyn,
resigned as Chairman of the Board of Broadcasters of Brooklyn, Inc. ,
which proposed to merge Brooklyn stations WARD, WLTH and WVFW.
Early this year Examiner Ralph L. Walker had recommended
that these stations, along with WBBC, also sharing time on the
channel, be deleted for alleged failure to serve public interest.
All these stations are on 1400 kc. frequency.
•Under the consolidation play, in addition to Representa¬
tive Celler as Chairman, Rabbi Aaron Kronenberg, of WARD, would
become President of the new organization, with Salvatore de
Angelo, of WVFW, as Vice-President, and Samuel G-ellard, of WLTH,
as Secretary-Treasurer.
Further hearings were ordered, the principal applicant
for the 1400 kc, frequency being the Brooklyn Daily Eagle, which
closed Tuesday, December 11.
The New York Congressman said that he did not disapprove
of the Eagle as a newspaper, but that he did not believe that any
newspaper should own or operate radio stations.
,rIt is a matter” , said Mr. Celler, "fraught with a
great deal of danger, the greatest freedom should be given to the
dissemination of news. There should be as many as possible
owners of radio facilities and newspapers, so that there can not
be any combination that will narrow that type of dissemination.
"Newspapers should stick to their own knitting", he
emphasized. "They should not own and operate stations, and I would
be for legislation which would absolutely separate them. "
"I do not believe that a newspaper's function is to
control radio. It would be a dangerous thing in this land if
newspapers could reach out for mastery not only into the news
columns but in the dissemination of news, and whatever goes over
the radio. That is a question of policy that I think I am well
qualified to dwell upon", he said.
Representative Celler several days later, however,
announced his resignation as Chairman of the proposed consolida¬
tion saying that he had changed his opinion with regard to news¬
paper ownership of radio stations. Prior to Congressman Celler' s
announcement the following editorial appeared in the Editor and
Publicher :
2
V*
12/18/34
Before the Federal Communications Commission this week
appeared Congressman Emanuel Celler, of Brooklyn, saying he did
not believe in newspaper ownership of any radio station, that
newspapers should 'stick to their own knitting', that newspaper
publication plus radio operation was an excess of power which
should be attacked by Federal legislation,
"It is well to let a little light fall on this curious
piece of statecraft at Washington. It seems that the Commission
is considering the application of one Aaron Kronenberg, a Brooklyn
butter and egg merchant and owner of a radio station WARD, to
merge his radio outfit with two other local stations, namely WVFW
and WLTH. In the new merged company the butter and egg man
would be President and lo.' behold.' Congressman Celler would be
Chairman of the Board. What stands in the way is the Brooklyn
Eagle Broadcasting Company's application for a license to operate
its station full time on the wave-length used by the others.
"Observe, in these circumstances, how quickly the
political philosophy of the Congressman conjured up a plausible
objection based on supposed public policy. It was not meet that
a newspaper should have too much publicity power. Newspapers
should attend to their own knitting* And so forth.
"We have no doubt the Federal Communications Commission
will be able to penetrate the motives of the Congressman from
Brooklyn, and fairly decide that issue, but the incident serves
to remind us of Senator Dill's recent outburst on the right of
radio to publish newspaper news in advance, and indeed the whole
matter of the Impudent disregard of the newspaper-radio news
agreement by independent broadcasters is again brought in view.
Senator Dill has used his power to encourage the independents to
go into the news business and it is more than an interesting
coincidence that he, too, has a covetous eye on ra,dio profits.
Indeed, he is going into the business.
"The question is: Can the radio interests control the
independent broadcasters? The air is now heavy with news, near
news, so-called news from independent stations. This fact is
well known to the major radio interests and to the Federal Com¬
munications Commission. When the radio-press agreement was reached
in New York the major radio interests were promising to bring the
independents into line. The opposite has happened. The inde¬
pendents immediately started to organize news systems. They act
as if free of all restrain, either by government or by radio.
"It seems to us that the press is being extraordinarily
patient with this condition. If a radio-press gentleman's agree¬
ment will not hold, maybe a Federal Communications Commission
order to compel the independents to observe limitations in regard
to news would be effective. There must be some way by which
butter and egg indepdnents, with their congressional advocates,
can be made responsible. After all, there are some genuine public
policies to be conserved, more important by far than the little
profits of any independent broadcasting station."
XXXXXXXX
- 3 -
12/18/34
TELEVISION TO AWAKEN ART APPRECIATION, SARNOFF SAYS
Among the thrilling possibilities which radio has in
store is television, David Sarnoff, President of the Radio Corpor¬
ation of America, said in an address, "Art in the Radio Age",
delivered at the College of Fine Arts at New York University.
"Think what an impetus to the cultural influence of
broadcasting, as well as to its entertainment possibilities,
will be produced by that event", Mr. Sarnoff, who is a member
of the University’s Council, went on. "Talks on architecture,
which are now broadcast by sound alone, will then be supplemented
by television pictures in which the audience may see the famous
buildings of which they are being told. Listeners will be able
to watch the performance of the opera they are hearing. A play
on Broadway may be seen by an audience in Arizona.
"If we let our imaginzat ions plunge ahead, we may also
dream of television in faithful colors. I believe that dream will
come true one day, and when it does, every home equipped for
reception can at certain times become an art gallery. We may
then be shown reproductions of the treasures of the Metropolitan
and the Louvre and have them interpreted to us as we sit by our
firesides and see them through the air. A new art appreciation
will thus be awakened.
"Ours is an era which fosters genius, multiplies its
opportunities for appreciation, and spreads its influence over
the entire world. Through broadcasting, sound motion pictures,
the electrified phonograph, and ultimately through television,
radio is providing conduits through which greater quantities of
art may flow than ever before.
"The radio age holds out that chance. Under the
influence of its offerings, public taste has been immeasurably
improved. The improvement reflects itself in the demand for
better and still better programs - a demand which is healthy and
encouraging. Radio’s greatest advantage over architecture is
in the elasticity of its medium. Its pattern need not be set in
stone and steel. Day by day and year by year it may meet the
changing demands of its patrons.
"For their future development, the arts must be entrust¬
ed to the vision and skill of the rising generation. At their
hand lies an almost miraculous means of communicating their
creative gifts to the masses.'* * * Art in the radio age, is a
challenge to the genius of the artist and the vision of the
educator. "
"In its youthfulness, radio typifies the eager stride
of today. It is only natural that the rhythm of radio should be
ehcoed in the pulse beats of our art students. Those students
and this new social force are sharing the rich spring of life
together. Radio as faithfully reflects their times as the
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12/18/34
railroads, pushing across the wide expanses of our country,
reflected the day of their grandfathers. 11
"Radio, perhaps more than any other industrial art,
can claim kinship with the fine arts", Mr. Sarnoff pointed out.
"On its wings, the messages of music and education speed to
uncounted millions. It brings the symphony orchestra to the
lonely farm house. It carries poetry and drama to the most
isolated hamlet. With the speed of light, the ether wave
carries art's treasures to all who may wish to receive them.
"The arts sprang from the people, and through its
mass distribution, radio is giving the cultural arts back to the
people . "
"In our very midst, at Rockefeller Center, Radio City
stands as architecture's dramatic contribution to the radio
age. It is a business venture in every way in harmony with the
living present. Its buildings combine the latest developments
of material and construction for efficient daily use. The
sheer beauty of their towering surfaces is severe and restrain¬
ed, but their popular appeal brings a steady stream of visitors
from all over the world. "
XXXXXXXXX
DEFEATED CONGRESSMAN PREDICTS STATION LICENSE FEES
Charging his defeat in the last election to the "power
and radio trusts", Representative Edgar Howard, Democrat, of
Nebraska, declared that he would take an active part in seeing
that a bill was put through Congress to require radio stations to
pay a license fee. fir. Howard, who has been in Congress since
1923 and before that was the editor of the Paplllion (Nebr, ) Times ,
says that he will not be able to introduce the license fee bill
in the House but that several representatives, whose names he
said he did not care to reveal, would do it early in the year.
Mr. Howard, who was formerly secretary to the late
William Jennings Bryan, and who resembles in appearance the
late Franz Liszt, the composer, is now editor and owner of the
Columbus (Nebr.) Telegram. He says that he proposes to return to
Nebraska but will continue to back up his colleagues by editor¬
ials in his paper.
"I have advocated a tax on broadcasting stations for
years", Representative Howard declared. "I'm not complaining
about my defeat by radio and other interests. I am used to that
but I feel nevertheless that broadcasting stations should be made
to pay their way and I think you will see such a law put on the
books in the next Congress. Because it is a revenue raising
matter, the measure will be considered by the Ways and Means
Committee. The stations do not now pay for the use of God' s
5
3
12/18/34
own radio waves and they have had a free ride about long
enough. "
Senator Dill proposed some such measure several years
ago and when asked about it yesterday, said:
"I think the stations ought to pay a license fee and
I think they would be glad to do it. 11
XXXXXXXX
EVERYTHING- LOOKS 0. K. TO RMA PRESIDENT FOR 1935
That the radio industry faces the New Year in a
particularly fortunate position, is the Christmas greeting of
Leslie F. Muter, President of the Radio Manufacturers 1 Associa¬
tion.
"Prices, with a few exceptions, have improved", Presi¬
dent Muter reports. "Code matters are slowly but surely reach¬
ing a more favorable basis. National industry sales promotion
has been approved and started. Interference reduction has been
inaugurated for the public on an extensive scale. The new all¬
wave receivers have provided the industry with the best sales
stimulus it has enjoyed in many years. To those who are develop
ing these programs and the many other RMA activities which
greatly benefit the industry, I am sure we are all very apprec¬
iative. "
Until the pending RMA application for an independent
code for the entire Radio Industry is settled, no action will
be taken by the National Recovery Administration on proposed
supplemental codes for separate groups of radio manufacturers.
An effort to unsnarl and definitely fix the NBA code
status and operations of radio cabinet manufacture is being made
by the NRA, the RMA and the furniture industry. The matter is
now before the general board of NRA for a final ruling so far as
specialty cabinet and furniture manufacturers are concerned,
as the electrical code will continue applicable to radio set
makers who manufacture their own cabinets.
XXXXXXXX
6
12/18/34
DILL STILL HOPES TO ESTABLISH RADIO NEWS SERVICE
Senator Dill, of Washington State, upon his return to
Washington, D. C. , this week reiterated that he hopes "to assist
in the building up of a nationwide and worldwide radio news
service (i.e. furnishing news to stations to broadcast).
"I do not intend to finance a service myself, however.
I think that is about all I care to say about my plans in connec¬
tion with the news project, at this time. "
"Upon his retirement from the Senate January 3, Senator
Dill will open up a law office in the Munsey Building in Washing¬
ton to practice before the Government departments and says he
will continue to take an interest in radio.
"I am not fully determined as to how active I shall
be in connection with radio", he said, "but will continue to
take an active interest in its development and particularly in
the legal questions that arise in relation to radio and the
public. "
An article in the current issue of the Saturday Evening
Post (December 15) by Senator Dill, "Why I Quit the Senate", seems
to be an answer to reports that if Judge E. 0. Sykes is eventually
appointed to the District Court of Appeals that Dill might suc¬
ceed him as Chairman of the Federal Communications Commission.
One gathers, after reading the Post article, that Senator Dill
has had what Sam Bernard, the old German comedian used to regard
as "Sufficiency. "
It is an extremely readable article of which the proud
comment of Senator Dill, himself a former newspaper man, was,
"And I got paid for writing it. " This really is an accomplish¬
ment to be proud of when it is known that most Senators, when
retiring, are lucky if they get six lines in agate in the home
paper and here's a man who not only gets away with two full pages
in the Saturday Evening Post, but actually gets paid for doing it.
XXXXXXXX
SAYS PHILADELPHIA ORCHESTRA OVERLOOKED RADIO
In his bill of complaints in the Philadelphia Symphony
Orchestra row, Leopold Stokowski said that this year the Orchestra
neglected its best asset - radio.
"During the past few years the Philadelphia. Orchestra
has definitely lost status with reference to broadcasting", Mr.
Stokowski wrote to the Directors. "It is imperative that we
regain the ground that has been lost. I am investigating the
question of (1) a comprehensive, sustaining program for next
year, and (2) a commercially sponsored program.
7
12/18/34
"You are all familiar with the fact that the New York
Philharmonic Orchestra receives approximately $40,000 each
season for the broadcasting of its Sunday afternoon concerts.
In the field of commercially sponsored programs there are excel¬
lent possibilities. I have been told that approximately
$375,000 is to be paid by a commercial sponsor for broadcasting
the Metropolitan Opera.
"We began last season with a deficit. We ended the
season with no deficit because of good broadcasting arrangements.
Even in these troubled times there need be no deficit whatever
in the orchestra' s work. With a good contract, it might even
be possible to reduce the price of the concert tickets. "
X X X X X X X
TWO BEACONS ON WOR TRANSMITTER PUT IN OPERATION RECENTLY
To guide flyers safely on their way and add a comfort¬
ing touch of light to the country-side around North and South
Rahway, two 500-watt lights have been placed in operation on the
two 400 foot towers of the new WOR 50,000-watt transmitter soon
to go in operation in Carteret, New Jersey.
These lights have been installed to indicate to
aviators flying the Newark to Washington route that they are in
the vicinity of the new WOR transmitter. In addition to these
lights, there will soon be placed in operation, a thousand watt
red revolving beacon located on top of the transmitter building.
These lights are visible from the Empire State Building in New
York which is located 16 miles northeast of the Carteret site.
They are also visible from practically all points in Essex and
Union Counties. As soon as the remaining equipment is installed,
these lights will blink alternately.
Planes coming from Washington can point out to passen¬
gers that Newark is just nine miles beyond the beacon lights of
WOR.
xxxxxxxx
MORE RADIOS THAN TELEPHONES?
A banner crop of radios was produced by the radio
industry in 1934, says Science Service. Four and one-half mil
lion new sets were added to those already in use, to bring the
total for the nation up to 19,000,000. This is 8,000,000 more
radios than there are home telephones. The 19,000,000 sets do
not include those in homes having two and three sets, nor some
2,000,000 sets now installed in automobiles, according to the
trade journal. Electronics.
xxxxxxxxxx
- 8 -
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INDUSTRY NOTES
Addressing the Crime Suppression meeting in Washington,
J. Edgar Hoover, of the Department of Justice, said that one
means of bringing about closer coordination was the development
of a national teletype or radio broadcast system of police
intercommunication.
WJW, Akron, joinedABS network last Saturday and started
to broadcast the American Broadcasting System programs in the
world rubber capital of Ohio. The station is owned and operated
by William T. Jones, Samuel Townsend and John F. Weimer.
Henry A. Bellows, Chairman of the Legislative Committee
of the National Association of Broadcasters, was highly commend¬
ed at the Board meeting in New York City for the thorough and
scholarly manner in which he presented the Broadcasters1 side of
the case to the Federal Communications Commission at the recent
educationzl-religious hearing.
"Lavender and Old Lace", (Bayer's Aspirin), and
"Melodiana" (Phillips Dental Magnesia) two half-hour programs
which together fill the hour from 8:00 to 9:00 P.M. EST, each
Tuesday night on the WABC- Columbia network, will continue on the
above schedule due to contract renewals effective Tuesday,
January 1.
Major K. K. V. Casey, Sales Manager of the E. I. du Pont
de Nemours Company, expressed "a purely personal observations"
at West Chester, Pa. that aerial torpedoes, controlled by radio,
might be used in the next war.
The executive said he foresaw this possibility from
experiments made in various parts of the world with planes flown
by radio control, without a pilot in the fuselage.
After repeated protests from the united forces of the
amusement business, the Standard Oil Company of New Jersey has
abandoned its free performances of the Guy Lombardo road show and
will book it in theaters as an added stage attraction at regular
admission prices. It will be known as the Guy Lombardo-Esso
Marketers Revue.
xxxxxxxx
- 9 -
.
12/18/34
FEDERAL MOVE SETTING- ASIDE DEPRECIATION ORDER CITED
Order of the Federal Communications Commission setting
aside the telephone companies depreciation ruling of the Inter¬
state Commerce Commission was characterized as of "great import¬
ance" to State Commissions throughout the country and of parti¬
cular importance to Washington, D. C. telephone users in a
statement by William A. Roberts, people's counsel, of the
District of Columbia.
"The order", Mr. Roberts said in a memorandum to the
District Public Utilities Commission, "is of great importance
because it relieves the overshadowing influence of the Inter¬
state Commerce Commission's orders as to depreciation and places
the burden of proving the correctness of depreciation rates,
insofar as they affect local regulation, upon the companies
rather than on the State Commission.
"In the District of Columbia, where a study of deprec¬
iation rates has been under way for approximately six months,
this is of the greatestAmportance as it leaves the local com¬
mission with a free hand to act in fixing reasonable deprecia¬
tion rates and preventing unreasonable charges for this purpose.
"Even more important than the definite action of the
Communications Commission is the cooperative and responsive
attitude shown by that body in this, the first of its orders
on the subject. It augurs well for effective regulation in the
future. "
The statement of the people's counsel was issued in
response to a Communications Commission order which said "that
the estimates of composite percentage rates submitted by tele¬
phone companies to the State Commissions and to this Commission
are for the information of the several Commissions, but shall
not be deemed to be priraa facie correct. "
X X X X X X X
CITY SALES TAX ON ACTUAL CASH ONLY
In New York City in the 2 percent New York City tax
on sales of radios, autos and other articles involving a trade-
in, it is proposed to tax only the actual cash involved in the
transaction.
X X X X X X
10
.* }
12/18/34
VARIABLE IMPEDANCE MATCHING FOR ALL- WAVE RECEPTION
A further refinement in noiseless antenna systems for
all-wave reception is offered in the variable impedance matching
of downlead to receiver. This feature is made possible by an
accessory applicable to any doublet antenna and receiver for the
first time. The knob adjustment brings about the precision
balance between antenna system and receiver for greatest sensi¬
tivity and loudest signals, while reducing still further any
remaining noises.
Known as the TACO Noise Rejector, the variable impedance
matching unit is a development of antenna specialists, Technical
Appliance Corp. , 27-26 Jackson Avenue, Long Island City, N. Y.
XXXXXXXX
EDITOR PICKED AS NBC AGRICULTURE HEAD
William E. Drips, Associate Editor of Wallaces' Farmer,
has been appointed Director of Agriculture for the National Broad¬
casting Company in Chicago, to succeed Frank E. Mullen, who has
taken a position as head of the Department of Information with
the Radio Corporation of America in New York City.
Drips, a veteran farm paper man and widely-known in the
field of agriculture, has served with the Des Moines, Iowa, farm
publication twelve years, previously teaching agricultural journal¬
ism at Iowa State College for three years, and operating a farm
in Clinton County, Iowa for four years. He was born in South
Dakota and graduated from the University of 'Wisconsin Agriculture
College and studied journalism three years at the University of
Washington.
As head of NBC*s agricultural department, Drips will
supervise the National Farm and Home Hour which Mullen originated
in 1928 and has directed through almost 1,900 programs.
XXXXXXXX
APPLICATIONS GRANTED BY BROADCAST DIVISION, FCC
December 18 - WFDF , Flint Broadcasting Co., Flint, Mich.,
C,P. to install new equipment; WQAM, Miami Broadcasting Co. , Miami,
Fla. , C.P. to move auxiliary transmitter to location of main trans¬
mitter in Miami; WRGA, Rome Broadcasting Corp., Rome, Ga, , C.P.
to make changes in equipment and increase day power from 100 to
250 watts; WTCN, Minnesota Broadcasting Corp. , Minneapolis, Minn. ,
C.P, to make changes in equipment and increase day power from 1 KW
to 5 KW, subject to compliance with specifications of the Air
11
>
12/18/34
Navigation Division, Dept, of Commerce, as to marking and light¬
ing the towers; WNAX , The House of Gurney, Inc. , Yankton, S. Dak. ,
C.P. to make changes in equipment and increase daytime power from
2-| to 5 KW, and to move station locally (570 kc. , 1 KW night,
unltd. ) ; WMFF, Plattsburg Broadcasting Corp. , Plattsburg, N. Y. ,
modification of C.P. to make changes in equipment; extend commence¬
ment date to 10 days after this date, and completion date to 60
days hereafter; WOR, Bamberger Broadcasting Service, Inc. , Newark,
N. J. modification of C.p. extending completion date to Feb. 16,
1934; KWTN» The Greater Kampeska Radio Corp., Watertown, S. Dak. ,
modification of C.P, extending completion date to Jan. 1, 1935;
KHJ , Don Lee Broadcasting System, Los Angeles, Cal. , modification
of C.P. to increase day power from 2\ to 5 KW; KFRC, Don Lee
Broadcasting System, San Francisco, modification of C.p, to increase
day power from 2^ to 5 KW.
WABY 5 Adirondack Broadcasting Co. , Inc. , Albany, N. Y. ,
license covering move of station from Hudson Falls to Albany,
1370 kc. , 100 w. , unlimited time; WH JB , Pittsburgh Radio Supply
House, Greensburg, Pa., license covering new station, 620 kc. ,
250 watts, daytime; WQAM , Miami Broadcasting Co., Miami, Fla.,
license covering local move of station, 560 kc. , 1 KW, unlimited
time; WBEO , The Lake Superior Broadcasting Co., Marquette, Mich.,
modification of license to make change in specified hours; NEW,
Bamberger Broadcasting Service, Inc., Mobile (Newark, N. J. ) ,
C.P. to operate in broadcast pickup service on frequencies 31100,
34600, 37600, 40600 kc. , 25 watts; W2XR, John V. L. Hogan, Long
Island City, N. Y. , modification of license to change name of
business to John V. L„ Hogan, d/b as Scientific Broadcasting
Service.
Action On Examiner's Report
New - H. E. Studebaker, Lewiston, Idaho, granted applica¬
tion for C, P. to construct a broadcast station at Lewiston, Idaho,
to operate on 1420 kc. , 100 watts, sustaining Examiner Geo. H.
Hill.
Miscellaneous
WSPD, Toledo Broadcasting Co., Toledo, Ohio, denied
petition to intervene and become a party to the hearing of the
application of WALR Broadcasting Corp. , for C.p. to move its sta¬
tion from Zanesville to Toledo; WT J S , The Sun Publishing Co.,
Inc. , Jackson, Tenn. , dismissed with prejudice its application
for the facilities of WNBR since request for withdrawal was not
made until 4 days before the time set for hearing and WNBR had
expended considerable sum in preparation of its case; W1XBS,
American Republican, Inc. , Waterbury, Conn. , granted license
covering new station, 1530 kc. , 1 KW, unlimited time (action taken
Dec. 11, 1934); WKEU , Radio Station WKEU, LaGrange , Ga, , designat¬
ed for hearing application to move station to Griffin, Ga. to
operate during unlimited daytime hours because of protest filed
by Station WRGA, Ga. ,Rome; grant heretofore made, subject to
protest, was suspended.
XXXXXXXX
- 12 -
_
Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL- Not for Publication
INDEX TO ISSUE OF DECEMBER 21, 1934.
New Congress May Create Communications Committee . 2 ^
Every Second New Zealand Home Soon To Have Radio . 3
Legislation In 74th Congress Hinges On Commission Reports . 4 ^
Hearst WBAL Purchase Approval G-oes Over To New Year . 5
Brighter Skies For Radio Seen . . . 5
No Room For Huey* s 50 KW Station . . . . . 6
British Do Not Favor Advertising, Says Sir John . 6
RMA Engineers Start On Facsimile Development . 7
Detroit Symphony Has Up-To-Date Pick-Up . 7
Telegraph Leaders At White House But Silent Afterwards . 8
Ohio Station Joins NBC . , . 8
Telegraph and Telephone Franks Up For Consideration. . . . 9
Pribble Heads WTAM . 10
Judge E. 0. Sykes On FCC Objectives . 10'
Industry Notes . 11
A Singapore Station - EAaybe. . 12
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NEW CONGRESS MAY CREATE COMMUNICATIONS COMMITTEE
Because of the divided authority in the House between
the Merchant Marine and Radio Committee, of which Representative
Schuyler Otis Bland, of Virginia, is Chairman, and the Interstate
and Foreign Commerce Committee, headed by Representative Sam
Rayburn, of Texas, a movement is under way to have a House Com¬
mittee appointed to have exclusive jurisdiction over communica¬
tions.
Up to the time the Communications Commission was created,
the radio authority in the House was lodged in the Merchant Marine,
Radio and Fisheries Committee. It went there through the fact
that wireless, which afterwards developed into radio, first came
into use for S.O.S. calls aboard ships. Due to the fact that
the Communications Commission bill carried with it wire communi¬
cations, as well as wire, including cable, telephone and tele¬
graph, it was referred to the Interstate Committee. There was
a sharp clash over this between Representative Rayburn and Judge
Bland, but the former won out.
The question of communications jurisdiction in the House
will again be raised in the new Congress, and the creation of a
new Communications Committee will be offered as a solution of
the difficulty. An additional reason for the need of the new
committee will be that the House Interstate and Foreign Commerce
Committee is already badly overburdened and has not the time to
devote to communications, a subject of sufficient importance to
require the attention of a special standing committee.
If such a committee were to be appointed, there would
be no chance that either Representative Rayburn, or Judge Bland,
who are the dominating men in the House in communications now,
would be its Chairman. Mr. Rayburn could not be appointed to
the new committee without giving up the Interstate and Foreign
Commerce Committee, because anyone who serves on that committee
is not allowed to serve on any other committee. It is what is
known as an exclusive committee. Naturally, the Texas Representa¬
tive wouldn't give up the Chairmanship of an old established
committee like Interstate and Foreign Commerce for that of a newly
created Communications Committee.
While Judge Bland would be eligible to serve on the
Communications Committee, since his own committee is not exclus¬
ive, he said that he would not give up the Chairmanship of the
House Merchant Marine, and Fisheries Committee if the chairman¬
ship of a new Communications Committee were offered to him.
2
12/21/34
It was said at the office of Representative Rayburn
that a movement to create a House Communications Committee "would
not get very far". On the other hand, Judge Bland said that the
creation of such a committee next session was "well within the
realm of possibility."
The creation of new Standing Committees in the House
of Representatives is a rare event. One of the last committees
to be added was the Veterans Bureau Committee following the
World War.
xxxxxxxx
EVERY SECOND NEW ZEALAND HOME SOON TO HAVE RADIO
Stimulated interest in radio reception has lately been
evident in Newr Zealand, according to a report from Vice Counsul
W. W. Orebaugh, Wellington.
During the six-month period ended September 30, it is
pointed out, sales of receiving sets in the Dominion exceeded
those for any similar period in recent years. The increased pur¬
chase reported all over the country, the Vice Consul states, is
due partly to the improved economic outlook, but much of the
increase has resulted from the growing interest in short-wave
reception. Short-wave sets are now more in demand than they have
ever been and indications are that this demand will continue for
some time.
At the end of last June, according to official statis¬
tics, there was one radio set for approximately 2.7 houses in New
Zealand. It is believed locally that every second home in the
country will soon be equipped with a receiving set. At the end
of July, there were 133,000 radio receiving sets registered. In
the July- September quarter of the number of licenses granted for
new sets totalled 13,595, an increase of nearly 25 per cent over
the second quarter.
Imports of complete radio sets into the Dominion in the
third quarter of the current year were valued at L37,583, an
increase of L18,194 over the preceding quarter. Receipts of
American sets increased from L13,453 in the second quarter to
L23,301 in the July-September period, it was stated.
New Zealand is showing a steadily increasing interest in
automobile sets and this market should prove a good outlet for
this type of American radio for some time to come, the report
states.
XXXXXXXX
3
♦
I
12/21/34
LEGISLATION IN 74TH CONGRESS HINGES ON COMMISSION REPORTS
Upon the reports of the Communications Commission, on
the subject of whether more time should be given educational
programs, and whether or not communications companies should be
allowed to merge, will doubtless depend the character of whatever
legislation of this sort, if any, the 74th Congress, which con¬
venes January 3, will take up. It is expected that the educa¬
tional-religious report may cause a general discussion of radio
broadcasting, in Congress.
There are those who think the confirmation of the
Federal Communications Commissioners by the Senate may also
await the filing of the reports which will be about February 1st.
The general impression is that all the members of the Commission
will eventually be confirmed but that Senator Wheeler, of
Montana, if he accepts the Chairmanship of the Senate Interstate
Commerce Committee, replacing Senator Dill, will certainly wait
for the Communications Commission reports, the first actual work
of these Commissioners, and upon this judge their qualifications
to continue to serve. Senator Wheeler would like to see a
Western man on this Commission and Senator Couzens may again
oppose Col. Thad Brown, but it is not believed these views will
be pressed.
If Commissioner Gary should be succeeded by Representa¬
tive Anning S. Prall, of New York, before he finishes writing
his report on the educational-religious program situation, there
may be some different conclusions. Mr. Gary is believed to have
an open mind on the subject but the assertion is made that because
Representative Robert Wagner, of New York, favors more time for
religious stations, the former may share the latter's views on
the subject. It was Senator Wagner who , at the request of Rev.
J. B. Harney, of New York, Superior General of the Paulist
Fathers, introduce a bill in the Senate which would allocate
25/ of all radio facilities to educational and religious stations.
It had been thought because Father Harney had made such
a brief appearance at the hearings that probably he was not as
aggressively interested in the subject as he had been, but it
developed that ill health had prevented the priest from testify¬
ing at length. A brief he submitted recently fairly bristled
with accusations and it was thought from this that his side of
the case might have further active support from Senator Wagner.
XXXXXXXX
4
12/21/34
HEARST WBAL PURCHASE APPROVAL GOES OVER TO NEW YEAR
Action on the sale of Station WBAL, in Baltimore, to
William Randolph Hearst, was considered by the Broadcast Division
of the Federal Communications Commission when it last met, but
a decision was deferred until the next meeting which will be
early in the New Year. It seems to be a foregone conclusion
that the station sale will be approved, but there was a current
report that this Commission would not finally go on record in
this matter until after the Commissioners had been confirmed by
the Senate. If this is true, it might mean considerable delay
in the transaction.
The price Mr. Hearst paid for WBAL is now pretty
generally understood to be $400,000.
X X X X X X
BRIGHTER SKIES FOR RADIO SEEN
The year 1934 draws to a close with bright prospects
before the radio industry, 0. H. Caldwell, former Federal Radio
Commissioner, foresees.
"Current production of sets and tubes is at a peak for
the depression, and retail sales are running 40 per cent ahead
of a year ago. Official figures for the third quarter show an
encouraging upturn in manufacturing, indicating that the year* s
output will reach 4,500,000 sets", Mr. Caldwell sums up.
"The radio audience now numbers at least 76,000,000
persons, in 19,000,000 homes equipped with radios (30 per cent of
these homes having two, three or more sets). In addition,
2,000,000 automobile radios are roaming the highways.
"Optimism also marks the future, as new developments
manifest themselves. Higher tone fidelity and better eye-value
design will characterize next season's sets. Noise and interfer¬
ence are to be cleared away by united industry effort. Facsimile
is a prospect of the immediate future, as broadcasters explore the
business possibilities of new visual advertising. Television
also becomes a nearer reality as the German and British invoke
government aid in financing transmitters, an expedient which may
may have to be resorted to here.
"Police radio is finding an important place in city and
state organizations, as analyzed on following pages of this issue.
The new acorn tubes open up new possibilities for short-wave
reception, and also for "pocket radios’ operating in the broadcast
band. Portable transceivers for laymen - handy sets working
around five meters - may create another volume-merchandise market,
reminiscent of radio’s gold rush days,
"Thus, all around the radio horizon, the sky is bright¬
ening, and one discovers cheering new prospects of big things
ahead. "
XXXXXXXX
5
12/21/34
NO ROOM FOR HUEY'S 50 KW STATION
No application has been received at the Federal Com¬
munications Commission for a frequency to provide for the 50,000
watt station which, according to press dispatches, Senator Huey
Long declared he proposed to erect in Louisiana. As things now
stand, it was said at the Commission, such a request could not
be granted because not only Louisiana, but the Third, or Southern,
Zone, of which Louisiana is a part, are both over their quota.
Louisiana is 94 units over its quota at night, and 14 units over
its quota in the daytime. The Third Zone is slightly under quota
in the daytime, but considerably over it at night.
Senator Long was reported as saying that he first pro¬
posed to put a bill through the State Legislature providing for
funds to finance the new station, and then later he expected to
secure the necessary frequency from Washington,
XXXXXXXX
BRITISH DO NOT FAVOR ADVERTISING, SAYS SIR JOHN
As a result of a recent exchange with Sir John Reith,
the National Committee on Education by Radio, has this to say:
"Radio writers in the United States have been saying
recently that it does not, and they have been using this assertion
to show that the highly satisfactory financial results of the
British system cannot be compared with those in the United States,
where the broadcasting industry as a whole, according to an
authorized spokesman, 'has never yet operated at a profit,'"
This was the answer to the question, "Does the British
Broadcasting Corporation make adequate provision in its budget
for depreciation?"
These same writers have created also the impression that
there is considerable sentiment in Great Britain favoring the
introduction of advertising into radio programs in imitation of
the American practise.
Sir John C. W. Reith, Director-General of the British
Broadcasting Corporation, answers these two assertions in the
following radiogram:
"Both statements entirely untrue. Regarding first,
depreciation provision more than adequate respecting every form of
capital asset. Regarding second, there was House of Commons
debate of private member's motion, February 1933, categorically
endorsing present non-advertising public service system by 203 to
27 votes. No Parliamentary committee nor any public body, so far
as we know, has ever discussed introduction of advertising. "
X X X X X X
- 6 -
12/21/34
RMA ENGINEERS START ON FACSIMILE DEVELOPMENT
Facsimile experiments have reached the point where
organized development is being undertaken by the RMA Engineering
Division. A special committee on radio facsimile, headed by
E. W. Engstrom, of Camden, N. J. , as Chairman, has been organized
by Dr. W. R. G. Baker, Chairman of the Engineering Division, and
Virgil M. Graham, of the Standards Committee.
The new Facsimile Committee has begun to function,
starting work on nomenclature and standardization. Four facsimile
circuits, between New York and San Francisco, London, Berlin and
Buenos Aires, are now in operation by RCA Communications, Inc.
The drum type of facsimile apparatus is now in use
but eventual development of a continuous type of recorder, taking
its paper from a feed roll, is regarded as the ultimate practical
solution for broadcast facsimile recording. Higher speed also
is an engineering goal.
X X X X X X X
DETROIT SYMPHONY HAS UP-TO-DATE PICK-UP
The Columbia Broadcasting System recently installed
complete speech input equipment in Orchestra Hall, Detroit, in
order to provide pick-up facilities for the Ford Sunday Evening
Hour. This program features the Ford Symphony Orchestra conduct¬
ed by Victor Kilar and is broadcast each week over a coast-to-
coast network.
A control room having a double-glass observation window
was constructed on the orchestra floor of the auditorium. The
addition of a radio control room has not altered the appearance
of the hall to any appreciable extent. In fact, when the control
room is not lighted from within, its presence is hardly notice¬
able. The control room is entirely outside the auditorium proper.
Thirteen microphone receptacles were distributed
throughout the auditorium, on the stage, backstage, and in the
wings. Twisted, two-conductor wrire , shielded in copper braid,
runs in conduit from each microphone receptacle to a "low-level1'
terminal box in the control room.
Provisions were made for the installation of public-
address loud-speakers in any one or all of three locations in
the auditorium. High-level audio and loudspea.ker field supply
outlets are provided in the upper boxes to the right and the
left of the stage and over and back of the proscenium arch. The
wiring from these outlets is brought in conduit to a "high-level"
terminal box in the control room.
XXXXXXXX
- 7 -
12/21/34
TELEGRAPH LEADERS AT WHITE HOUSE BUT SILENT AFTERWARDS
Silence on the part of all concerned followed a confer¬
ence which President Roosevelt had supposedly concerning the
Telegraph Code at the White House Thursday.
Those present at the conference were S. Clay Williams,
Chairman of the NIRB, and the whole membership of the Board;
Judge Eugene R. Sykes, Chairman of the Federal Communications Com¬
mission; Newcomb Carlton, Board Chairman of the Western Union
Telegraph Company; Sosthenes Behn, Chairman of the 3oard of the
International Telephone and Telegraph Company, of which the Postal
Telegraph Company is a unit, and L. H. Peebles, who is in charge
of the proposed Telegraph Code.
According to the New York Times , a virtual ultimatum
was given by President Roosevelt to the two major telegraph com¬
panies to accept the code for their industry which lias been pend¬
ing for more than a year, or present one of their own.
"The President intervened for the first time in the
fight by the National Recovery Administration to bring under a
code of fair competition the largest uncoded industry at the
request of the National Industrial Relations Board. "
When asked if the Times story was true, Mr. Peebles
said,
"Entirely out of the thin air, and a deduction of some¬
one who evidently has followed the Telegraph Code hearings. Did
you ever hear of anyone coming out of a conference with the
President and talking? Anyone who would do this would be a damn
fool. »
No comment upon the conference was forthcoming from the
White House. Judge Sykes likewise had nothing to say.
XXXXXXXX
OHIO STATION JOINS NBC
Station WHIO, Dayton, will join the NBC-WEAF network on
February 2. WHIO, owned by the Evening News Publishing Company
of Dayton, and the Springfield Newspapers, Inc. , of Springfield,
Ohio, will be the NBC’s 88th station on the coast-to-coast net¬
works.
XXXXXXXX
- 8 -
12/21/34
TELEGRAPH AND TELEPHONE FRANKS UP FOR CONSIDERATION
Conditions surrounding the issuance of telegraph and
telephone franks are now up for consideration by the Federal Com¬
munications Commission.
A hearing has been called by the Telegraph Division for
Monday morning, January 14th to hear testimony and argument on
proposed rules with regard to the issuance of telegraph franks
and the giving of free telegraph services. According to these
rules, telegraph franks would be issued only to the following full¬
time officers, agents of the carriers and to their families:
President, Vice-Presidents, Secretary, Treasurer,
General Counsel, Comptroller, Chief Engineer,
General Manager, General Passenger Agent, General
Freight Agent.
Common carriers not subject to the Communications Act
of 1934, whose officers and employees would be entitled to receive
franks from the telegraph carriers would be the following:
Railroad companies, Steamship companies
Motor bus companies, Air transport companies
Telephone Companies, Telegraph companies
Another paragraph of the proposed regulations would
provide that:
w Every telegraph carrier subject to the Act shall make
a special monthly report to the Federal Communications Commission
with respect to all franked messages sent during each month by
each frank holder. The report, which shall be made to the Commis¬
sion not later than the first day of the second month following
that for which the report is made, shall show with respect to
each telegraph frank holder the name of the addressee of each mes¬
sage, the places of origin and of delivery, and the amount of the
charges which would have accrued at the regular charges; it shall
also show the total number of franks outstanding at the end of the
month, the total number of franked messages sent during the month,
and the total revenue which would have accrued had the franked
messages been paid for at the regular charges.
"The total number of messages sent by each frank holder,
the total for all frank holders, the total charges which would have
accrued on messages sent by each frank holder and the total charges
which would have accrued on messages sent by all frank holders
shall be cumulative each month for the period beginning January 1,
1935. M
9
12/21/34
The Telephone Division of the Commission ordered that
each Class A Telephone carrier shall, before March 1, by filling
out a questionnaire now being prepared, make a full report with
regard to the issuance of telephone franks or free service for
the period from January 1st to December 31, 1934. It further
ordered that effective January 1, 1935, all Class A telephone
carriers subject to the Act, shall keep their records in such
manner as will enable them, to furnish the Commission with the
information requested in said form questionnaire for any month
or months, subsequent to December, 1934, as may be requested by
the Commission.
Also, that all Class A telephone carriers subject to
the Act, shall retain in their possession all original records
containing the data used in compiling the response to the said
form questionnaire, until such time as this Commission shall
specifically authorize the destruction thereof. 11
XXXXXXXXX
FRIBBLE HEADS WTAM
Vernon H. Fribble has been appointed G-eneral Manager of
Station WTAM , Cleveland division of the National Broadcasting
Company. He was for eight years on the advertising staff of
the Chicago Tribune and later became G-eneral Manager of Station
WGN in Chicago.
Pribble succeeds Wt Webster Smith in the WTAM position,
the latter having been granted a leave of absence to permit him to
recover his health. Smith is now in Florida and expects to remain
there until he is able to accept another NBC assignment.
X X X X X X X
JUDGE S. 0. SYKES ON FCC OBJECTIVES
The objectives of the Federal Communications Commission
in the field of radio will be discussed by the Chairman of the
Commission, Judge Eugene 0. Sykes, in a broadcast from Washington
on Friday, December 28, over the WJZ network, when he will be
interviewed by Martin Codel, at 9 P. M. E. S. T.
XXXXXXXX
10
12/21/34
INDUSTRY NOTES
The Internal Revenue Tax collections for the first
five months of the present fiscal year on radio sets, phonograph
records, etc. , as compared with the same period last year, were
given out by the Treasury as follows:
July 1-Nov. 30, 1934 July l~Nov. 30, 1933
1,370,319,06 1,003,729.46
Station WOOL, in Columbus, Ohio, has joined the American
Broadcasting System and effective Christmas Day will broadcast
daily programs of the new major network, C-eorge B. Storer, Presi¬
dent of ABS announced in New York City. Station WCOL is the
twenty-first affiliate of the ABS.
Edgar Wolf, of Columbus, is the President of the
Columbus Broadcasting Corporation which owns and operates the
newest ABS station. Transmitting on 1210 kc. , with 100 watts
power, WCOL was recently assigned its present call letters. It
previously was WSEN.
The next meeting of the Broadcast Division of the Com¬
munications Commission will be Tuesday, January 8, 1935.
Frank E. Mullen, newly appointed head of the RCA
Information Bureau and Chairman of the National Radio Conserva¬
tion Council, who instituted the Conservation Day programs each
Friday in the National Farm and Home hour, will be the principal
speaker during the broadcast over an NBC-WJZ network December 28
at 12:30 P.M. , E. S. T. Mullen will discuss the origin of the radio
programs on conservation and outline plans for continuation of
the series during 1935 in which the question of land utilization
will be the central topic.
The Radio Committee of the Russian government has devel¬
oped a new program of television broadcasts. This program includes
a periodical sight and sound journal, Telechronique, a multiple
film written especially for radio broadcasting, a radio concert in
which the interpretations are photographed and recorded on the
film, and several simple television broadcasts.
11
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After hearing defense testimony by Mayor Ambrose Langan
of Pittston, Pa. , and others, Magistrate Klapp in New York dis¬
charged Wednesday afternoon two business men who had been accused
of malicious mischief by a radio announcer for the American
Broadcasting System.
The case grew out of a disturbance in a mezzanine box
at the Army-No tre Dame football game Nov. 24. The defendants
were George L. Armour, 36 years old, Executive Vice President of
the American Aniline Products Company, and Andrew Sokol, 36,
secretary of the textile house of Brand & Oppenheimer.
XXXXXXXX
A SINGAPORE STATION - MAYBE
At the present time a group of local promoters are
endeavoring to raise sufficient capital to erect a modern broad¬
casting station at Singapore. Altogether, Trade Commissioner
Foster estimates that if the right kind of programs become avail¬
able and radio sets are offered at a reasonable figure, there
should be a potential demand for approximately 75,000 sets in
British Malaya.
X X X X X X X
ISSUES OF DEC. 25 AND JAN. 1 TO BE OMITTED
DUE TO THE FACT THAT DECEMBER 25TH AND JANUARY 1ST
ARE HOLIDAYS, THE ISSUES FOR THOSE TWO DAYS WILL BE OMITTED.
THE BROADCAST, TELEGRAPH AND TELEPHONE DIVISIONS OF THE FEDERAL
COMMUNI CAT IONS COMMISSION WILL NOT MEET UNTIL JANUARY.
XXXXXXXXX
12
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Heinl Radio Business Letter
2400 CALIFORNIA STREET WASHINGTON, D. C.
CONFIDENTIAL- Not (or Publication
INDEX TO ISSUE OF DECEMBER 28, 1934.
Broadcasters Call Commission "Spineless" in WLW Cut . 2
Sales of Radio Sets Attain All-time High During 1934 . . 4
Great Loss is Suffered On Franked Messages . 5
WSPD Blocks Hearing Through Court Action . 6
News "Lifting” By Radio Is Upheld . . . . 7
Short Wave Fans Exhaust U.S. Station List Supply . 8
Wireless As Standby In Japan . . 9
Radio Pioneer Is Honored . 9
RCA Committee Defers Capital Readjustment . 10
Commission Unsatisfied With Interlocking Directorates . 10
RCA Units Consolidated . . . 11
McCosker WOR Resignation Reported . 11
Industry Notes . . . . 12
national j
a,-- ^ LEGAL DEPARTMEN1 I
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DEC 2 1 1934
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BROADCASTERS CALL COMMISSION "SPINELESS1* IN WLW CUT
Characterizing the move of the Federal Communications
as " spineless" in its proposal to cut down the power of Station
WLW in Cincinnati, America's most powerful station, from 500,000
watts to 50,000 watts, on what they call a "wholly unjustifiable
complaint" of the Canadian Government, broadcasters of the United
States seem to be unanimous in their condemnation of the Communi¬
cations Commission's action. So acrimonious are they, in fact,
that it looks as if what they call the Commission's "backing
down without firing a shot", may jeopardize the friendly broad¬
casting relations between this country and Canada.
The casis belli was a complaint relayed through our
State Department from the Canadian. Radio Commission that WLW
operating on 700 kilocyles had been blanketing station CFRB
in Toronto at night. Officials of the Communications Commission
were mum on what action they took in the matter. They have
never been quite so silent on any subject before.
From the best information available, it appears that
our Commission has agreed to order a cut in WLW s nightime power
from 500,000 watts to 50,000 watts, effective February 1st. It
was described as a temporary cut and the hope was expressed that
"further diplomatic conversations might bring about a better
solution. "
"The real issue at stake is whether or not Canada is
going to write the broadcasting regulations for the United States"
an irate broadcaster declared. "If we authorize the use of a
certain amount of power and it does not cause serious interference
in this country shall we allow the Canadians to tell us what we
shall or shall not do?"
"It is very strange that this Canadian Station which
operates on 690 kilocyles, 10 kilocyles from WLW which broadcasts
on 700 kilocyles, should be interfered with when there has never
been a word of complaint from WOR, Newark which is on 710 kilocyles,
likewise only 10 kilocyles removed from WLW. "
"This is the first serious complaint we have had from
Canada but it won't be the last if we back down as readily as
the Communications Commission and the State Department appear to
have done", a noted radio engineer observed. " I don't think
the situation up there is anywhere near as bad as they make it
out to be but rather that it is more or less local politics
in Toronto and Ottawa. " "The Canadian Radio Commission has
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12/28/34
to justify its existence and I think for that reason feels
that it has to stir up trouble every once in a while."
"According to our agreement with Canada CFRB at
Toronto should be using 50,000 watts. Instead it is only using
10,000 watts. If it were using 50,000 it wouldn't be affected
nearly so much. "
Asked if he thought the problem might be solved if WLW
were to install a directional antenna, the engineer replied:
11 It would be if they could figure out a way of cutting
down the signal in the direction of Toronto without reducing its
strength in northern Ohio, the station's principle service area.
"Personally I have never been sold on such excessive power
as WLW is using," another broadcaster said. "I don't think it is
doing a better job using 500,000 watts than .it was when it was
using 50,000 watts. All you get out of high power is scattered
rural coverage. People in distant cities don't listen to such a
station but rather to their local stations. It seems to me
economically unsound to run the capital stock of a station from
8250,000 to over 01,000,000 and not get any more out of it than
Mr. Crosley is apparently getting out of WLW on 500,000 watts.
"I disagree with Crosley there but I am squarely behind
him, as I am sure the entire industry will be, in hitting back
when our Commission allows Canada to dictate this drastic power
cut. I predict that Mr. Crosley will put up a real fight and
he has a lot to fight with. "
I
Remarking that the trouble came at a most embarrassing '
time for the new Communications Commission, the members of which
have not yet been confirmed by the Senate, the broadcaster con¬
cluded:
"I think the fact that they are soon to be up for con¬
firmation by the Senate had a lot to do with their action in
the WLW case. Some of these wild eyed Senators think 100 watts
is all a station should have because a 100 watt station is the
most many of them have ever seen. There is always a howl in
the Senate when any power increase is discussed. The Commiss¬
ioners know this and they are playing safe before the storm
breaks. "
Although Station CFRB in Toronto is Canadian owned
it is affiliated with the Columbia Broadcasting System network.
XXXX XX XXX
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12/28/34.
SALES OF RADIO SETS ATTAIN ALL-TIME HIGH DURING 1934
During the current year there has been an almost
uninterrupted month- to-month gain in radio sales, with demand
impervious to the usual period of Summer dullness, due to the
extended popularity of automobile and portable sets. The
introduction of the all-wave set at a price within the easy
reach of the multitude has been one of the outstanding con¬
tributions to the new peak levels set by distribution. Broad¬
casting stations also have furnished bolstering support to the
wider use of the radio.
Although all previous records were outdistanced during
1934, current indications reveal a stronger uptrend of demand
during the first quarter of 1935, with some new peaks to be
established during the last six months of that year, according
to a survey of the radio industry, which has just been completed
by Dun & Bradstreet, Inc.
In spite of the encouraging progress made during the
first six months of the current year, the increase in sales has
been abrupt since the new models were displayed early in the
Fall. In the comparison with the totals for the corresponding
period of 1933, losses were reported in no parts of the country,
while the increases ranged from 25 to 100 per cent. The cheaper
sets have been bought freely, but the proportion is not so large
as it was last season, as there has been a decided shift to the
higher-priced all-wave sets during the last three months. Based
on the returns for the elapsed eleven months, with the returns of
the Christmas season yet to be tallied, it is estimated that sales
for the country, as a whole average 40 per cent larger than for
the comparative period of 1933. This would bring total sales
for 1934 around 5,350,000 sets, as compared with the previous
peak of 4,438,000 units set down for 1929.
From 60 to 65 per cent of the units sold represented
replacements, which is about the same ratio as in 1933.
The increased hours of leisure, the perfection of
the all-wave receivers, and especially the improvement and exten¬
sion of broadcasting programs have been responsible for the un¬
precedented expansion which interest in the radio has attained
this year.
In October, the highest sales in broadcast history
were reached at $4,527,000, a gain of 59.0 per cent over the 1933
comparative figures, and 49.1 per cent higher than in October 1932.
For the ten months of 1934, these sales amounted to $33,780,000, or
38.8 per cent ahead of the 1933 comparative figures, and 2.2
-4-
-•-V
12/28/34.
per cent in excess of the 1932 total, which represented the all
time high.
Wide fluctuations in prices have been absent since
last Spring, and the current level is holding steady at 10 to
25 per cent higher than at this period a year ago. The present
firmness, however, is inclining upward, and advances already have
taken place in some of the medium arid better grades of console
types of all-wave sets. The popularity of the smaller radio
sets, however, apparently is waning, as the price inclination
in this division is downward. Manufacturers have thus far
succeeded in withholding from retailers most of the increases
which have resulted from the higher operating costs under the
code. As this policy, however, has made heavy inroads on profits,
substantial upward revisions may become necessary next Spring.
The status of general collections is reported as the
most satisfactory that has obtained since 1929. In the retail
division it has been particularly satisfactory, and wholesalers
have received payment in full on some old accounts which were
carried over from last year. Collections on deferred-payment
sales have been kept up to date in most districts, writh re¬
possession the fewest in many years.
The stronger financial position which all members
of the industry now have achieved, as compared with their
condition during the three preceding years, has brought bank¬
ruptcies almost to a complete stop. For the eleven months of
1934 only 6 manufacturers failed, with the involved liabilities
$526,630, as compared with 25 defaults entailing a loss of
$3,719,519 for the twelve months of 1933.
Among the wholesalers and retailers the reduction in
the number of bankruptcies was even more decisive, the total
dropping from 109 for the twelve months of 1933 to 33 for the
eleven months of 1934. The sum of the involved liabilities,
however, was little changed in this division, as one large whole¬
saler had a defaulted indebtedness of more than $1,000,000, which
pushed the total for the eleven months up to $1,621,283, or only
slightly under the $1,813,980 recorded for 1933.
XXXXXXXX
GREAT LOSS IS SUFFERED ON FRANKED MESSAGES
Apropos a hearing on the Communications Commission
proposed rules on franking privileges which will be held Monday
January 14, it has been found that five companies during a single
month, June 1934, the month for which complete returns were
available, lost $23,119 on free service to persons other than
-5-
10/28/34.
their own employees. They were Mackay Radio and Telegraph
Company, $344. 10, Postal Telegraph Co., $8,742.93, Radiomarine
Corporation of America $3,200.68, Mutual Telephone Company,
$15.20 and Western Union $10,816.44.
If June be taken as an average month, the total amount
of charges which would have accrued on free messages sent by the
carriers named in the table for others than employees of carriers
subject to the Communications Act of 1934 and their families,
for a calendar year would be $277,432.20.
Moreover, the Mackay Radio and Telegraph handled
46,628 words free of charge for the Byrd Antarctic Expedition
for which the regular charges would have been $79,950.31, and
the Western Union handled 266,407 messages free of charge in a
demonstration of how telegraphy might be used in connection with
broadcast programs.
By way of showing liberal use made of franking pri¬
vileges the Commission revealed the fact that in eight months
the wife of a trustee of the St Louis and San Francisco Railway
Company sent 110 messages, the revenue from ’which would have
been $415.96, the wife of the Vice-Chairman of the Southern
Pacific Company S67 messages, $572.20, the wife of the Vice
President and General Manager of the Southern Pacific 498
messages, $469.71, the wife of the President of the Southern
Pacific 509 messages , $472.83 and the wife of the President
of the Union Pacific, 344 messages, $438.95.
XXXXXXXXX
WSPD BLOCKS HEARING THROUGH COURT ACTION
Because of the Toledo Broadcasting Company of Toledo,
Ohio, owners of Station WSPD asking the District Supreme Court
to enjoin the Federal Communications Commission from holding a
hearing January 4 on the transfer of a competing station the
hearing has been postponed until the Court acts.
Through attorneys Horace L. Lohnes and Homer L.
McCormick, the company, operator of Station WSPD, said that
Station WALR, of Zanesville, Ohio, had asked for a transfer of
its license ;so that it could operate from Toledo, because of the
effect such a transfer wrould have on its business, the Toledo
station sought permission to intervene in a hearing which was to
have been held January 4, and was denied the request.
-6-
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$
10/28/34.
l*
Two other cases involving the same principle are now
pending in the District Supreme. .Court , one of which Station WBEN
of Lawrence , Kans. , which has been appealed to the U. S. Court
of Appeals.
xx:xxxxxx
NEWS "LIFTING” BY RADIO IS UPHELD
Ignoring the right of news agencies and publishers to
control the use of news they gather and pay for, Federal District
Jodge John C. Bowen in Seattle last week made public a decision
condoning the unauthorized use of news by radio stations.
Judge Bowen dissolved a temporary restraining order
obtained two months ago by the Beliingham( Wash. ) Publishing
Company against Station KVOS, located in Bellingham, preventing
the radio station from its longtime practice of braodcasting
local and telegraph news obtained from the Bellingham Herald,
the Seattle Times and the Seattle Post-Intelligencer, The
suit dismissed by the court's ruling was brought in the name
of the Associated Press.
Judge Bowen's 24 page decision was unprecedented in
its absolute indifference to news property rights.
"A ruling that news becomes public property the
moment newspapers containing it are distributed to the public, made
by Federal Judge John C. Bowen, at Seattle, Wash., is one of the
most constructive factors that has developed in the newspaper
business in years,” the Editor and Publisher comments, "and
unless his decision is appealed and reversed the great news agencies
of this country will be at the mercy of every commercial interest
wishing to trade upon them, while grasping, irresponsible, mis¬
chievous independent radio stations, now running fast and loose
with”ne.ws service” enjoy a field day.”
Kent Cooper, general manager of the Associated Press,
said in New York that "undoubtedly the case will be promptly
appealed. ”
In his decision Judge Bowen wrote: "This court holds
that when,. general news furnished by complainant ( the Associated
Press) or local news claimed to be under its control as regards
publication, has been printed in a regular issue of complainant's
member newspapers and that issue has been, in the ordinary course,
published and distributed to the public, such news reports from
that moment belong to the public, including the defendant (KVOia)
and all others who may desire to use them except for sale by a
rival news agency to its news publishing customers. And that
the mere fact that the defendant disseminates gratuitously those
news reports as a part of its radio service after they have been so
received by the defendant contemporaneously with other members
tt
-7-
12/28/34.
of the public, does not prevent defendant from so receiving
and using such news reports, since such practice by defendant does
not involve the pirating by one news gathering and distributing
agency of news reports of another such agency, as in the case of
the Associated Press versus the International News Service."
"In the earliest period of our country's history,
communication of private dispatches and public news was by
individual curier on foot or, like iPaul Revere, on horseback.
Later came the stagecoach with the mails, always pressing
onward to new frontiers. Next the locomotive or as originally
known the "iron horse", developed the mail express, soon, however,
yielding a portion of its communication business to the telegraph
and telephone and later yielding much of its business to its present
aggressive competitor, the motor bus, motor trucks and airplanes.
In many instances electric street railways have been forced out
of business by the more convenient and efficient motor bus.
"These improvements and developments have occurred in
the field of news communication as well as in transportation and
have facilitated and have been indispensable to the march of
progress in which the public has been most vitally interested,
and, in respect to them, the protection of private investments has
had to yield to the convenience of the public.
"A fair construction of the true situation in the case
at bar is that it involves an exemplification of the greater
efficiency of modern news dissemination instrumentalities as
compared with those of bygone days, which, in those days, adequately
served a like private enterprise and public interest.
"Complainant's and its newspaper members' facilities
are not likely to pass into ^disuse as some news communication
instrumentalities have in the past but the service which complain¬
ant's facilities have rendered to the past or may render to the
future cannot be employed to hinder the use of more modern means,
including those of the defendant radio station, which, in some
respects, surpass complainant's facilities to an extent comparable
to the advantages of the airplane over those of the railraod
train. "
XXXXXXXX
SHORT WAVE FANS EXHAUST U. S. STATION LIST SUPPLY
A very definite indication of the increasing number of
all-wave sets is the fact that the Government has been cbmpletely
swamped by requests for copies of a list of world short-wave radio**
phone transmitters.
-8-
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ii
12/28/34.
Public demand for copies of this list recently
issued by the Bureau of Foreign and Domestic Commerce, Department
of Commerce, has been so great that three editions totalling
6,000 copies have now beep completely exhausted.
Orders in hand for approximately 2,000 copies of the
list can not be filled uptil the January edition of the publication
can be compiled and made available for distribution. The date of
availability of this edition is contingent upon the time remaining
to complete the work after performing the more important normal
functions of the Electrical Equipment Division.
The list for which the unexpected don and has developed
includes essential information for every world radio station
employing radiophone transmissions, irrespective of category,
service, or nationality, on frequencies above 1,500 kilocycles.
Copies of the list are sold at 25 cents each, which
price covers only the cost of compiling and printing. Orders
should be addressed to the Electrical Equipment Division,
Bureau of Foreign and Domestic Commerce, Department of Commerce,
Washington, D.C.
XXXXXXXXX
WIRELESS AS STANDBY IN JAPAN
Wireless apparatus is to be installed in the telegraph
offices of all important cities in Japan, says Reuter, in order
to ensure smooth- working -communications in any emergency. This
step ha.s been taken by the Ministry of Communications as a
result of the experience of the serious conflagration at Hakodate,
in which all land wires, which were the only means of communication,
were destroyed.
XXXXXXXX
RADIO PIONEER IS HONORED
Dr. Ernest F. W. Alexanderson, pioneer in the development
of radio in this country, was notified at Schnectady of his
election to membership in the Royal Academy of Science of Sweden.
He is a consulting engineer for the General Electric Company.
XXXX XXXX
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12/28/34.
RCA COMMITTEE DEFERS CAPITAL READJUSTMENT
The special committee of directors of the Radio
Corporation of American appointed to consider a capital read¬
justment plan advised against the adoption of any plan at this
time, and officers and directors concurred unanimously. A
statement to this effect was issued by General James G-.Harbord,
I chairman of the board, and David Sarnoff, president of the
corporation.
No information was available as to the committee's
reasons for concluding that adoption of a readjustment plan
now would be untimely.
In the opinion of many observers, according to the
New York Times it may be six months or more before a plan may
be proposed.
"Perusal of the official statement of the Radio
Corporation of American, issued after the meeting of the
directors, indicates definitely that the idea of formulating
a plan to care for the arrearages of dividends on the preferred
stocks has not been abandoned but simply was not considered
timely. " a Times financial writer observes. "The great number
of changes in economic conditions and practices in the last
eighteen months, the preliminary work of the new Federal
Communications Commission and other factors may have influenced
the decision of the R.C.A. to defer action in this matter."
XXXXXXXX
COMMISSION UNSATISFIED WITH INTERLOCKING DIRECTORATES
Eleven officials and directors of leading telegraph,
telephone and radio companies have been ordered to show cause
why they should be allowed to continue as officers or directors
of more than one carrier.
The order was issued by the Federal Communications
Commission, under the section of the Communications Act which
forbids interlocking directorates. It named Walter S. Gifford,
president of the American Telephone and Telegraph Company;
Sosthenes Behn, president of the International Telephone and
Telegraph >Co; David Sarnoff, president of Radio Corporation of
America; Edwin F. Chinlund, vice president of the Postal Telegraph
Company ; Newcomb Carlton, board chairman of the Western Union
Telegraph Company, and Edwin F. Carter, John W. Felton, E.Y.
Gallagher, Joseph J. Halpin, Lewis MacConnach and Frank L.Polk,
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all directors of communications companies.
In setting Monday, January 21 for a hearing on
applications for permission to hold posts in more than one com¬
pany, the commission asserted that the applicants have those
far failed to convince "that public and private interests
will not be adversely affected" by interlocking directorates.
Pending outcome of the hearing all the applicants
will be allowed to hold their present posts.
XXXXXXXXX
RCA UNITS CONSOLIDATED
The RCA Victor Company and the RCA Radiotron Company,
the two wholly owned manufacturing subsidiaries of the Radio
Corporation of America, have been consolidated into a single
organization to be known as 'RCA Manufacturing Company , Inc ' .
The new company will begin operations as of January 1st. The
consolidation is being made primarily for convenience of
operation. The present officers and management . of the two
subsidiary companies will continue in their respective positions,
and the factories located at Camden, N.J. and Harrison, N.J. will
continue their operations as at present.
The present trade-marks on the products manufactured
by these companies will be continued through the establishment in
the RCA Manufacturing Company > Ind. , of two divisions, which will
be known as 1 RCA Victor Division1 and 'RCA Radiotron Division.'
E. T. Cunningham will be the President and Mr. David
Sarnoff the Chairman of the Board of Directors of the RCA Manu¬
facturing Company, Inc.
XXXXXXXX
MCCOSKER WOR RESIGNATION REPORTED
The following was carried in the last issue of Variety :
"It was understood in radio circles Monday ( 24) although not officially
confirmed that Alfred J. McCosker has resigned as president of WOR,
Newark. His retirement is understood to take effect January 1.
McCosker contract, which had about a year to go, is reported amicably
settled by the Macy department stores interests which operates the
station.
"McCosker, who has served two terms as president of the
National Association of Broadcasters took over the management of
WOR for the Bamberger store in Newark eight years ago.
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12/28/34.
• •44
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INDUSTRY NOTES
• • » •
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In the Louisiana Senate Senator Huey Long tacked on an
amendment to a bill which would give the State University the
right to build or buy or operate under contract or lease, radio
stations or broadcasting facilities. Senator Long announced that
in connection with the University’s dental school he expects to
hold a school and public health clinic of the air, with musical
programs to provide cultural enjoyment over the Louisiana State
University broadcasting system.
James Wallingford, of the NBC, received the National
Academy of Arts Medal as the best radio announcer.
Mr & Mrs Alfred J. McCosker gave a tea dance in the
Petit Saloon of the Park Lane, New York for their debutante
daughter Miss Angela F. McCosker.
G-lenn I Tucker, formerly in charge of public relations
of the Radio Corporation of America has opened an office in the
Graybar Building, 420 Lexington Avenue, New York. Mr. Tucker will
handle accounts that are available in the field of industrial
writing, including company statements, annual or quarterly statements
to shareholders, news releases, and general publicity.
Radio tax collections for October 1934 were $280,699 as
compared with $305,291 of the previous month. September reports
on employment were about the same as the previous month, 58 radio
and phonograph factories with 39,999 employees.
The picture of William S. Poley, appears in Fortune
Magazine for January with the following caption:
"With business 55 percent better than last year, the
Columbia Broadcasting System has voted a 50 percent
stock dividend. This on top of a five for one split
last February, is further indication ef the success of
Columbia’s smart, unassuming young President."
Commissioner Thad Brown spent the Christmas vacation in
Ohio, Commissioner Case in Rhode Island and Commissioner Payne in
New York. Commissioner Sykes, Gary, Stewart and Walker remained in
Washington.
. f
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• -
Heinl Radio Business Letter.
July - Dec. 1954.
DATE | ISSUED TO
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